What does Charged Off mean pertaining to credit card account and what happens after this occurs on a credit ca

Question

What does Charged Off mean pertaining to credit card account and what happens after this occurs on a credit ca

Answer 1

It means they couldn't get the money owed to them by you and had to take a capital loss. Basically from the time your account went into default (usually 30 days) your credit started dropping. As you progress to 60, 90, 120, you're then reported to a collection agency who tries to collect on the debt that the original creditor sold to them. Now you're credit is bleeding.....if you don't pay before long you get handed a summons to appear in court with  a judgement against you...they'll garnish your wages and grab any assets you have.

Answer 2

It goes on your credit report for 7 years. They may also take you to court and if the Judgment of Default is won, that also goes on the report. It may also cause your auto insurance to go up because of the default.

Answer 3

usually means they've given up on you and wrote off the debt - could still be sold to a collection agency - just don;t talk to anyone calling about that account