When I got my credit report, a lot of them said charge off. What does this mean

Question

When I got my credit report, a lot of them said charge off. What does this mean

Answer 1

A charge-off means that the company who issued the credit has had to write off the unpaid debt against their p&l (profit & loss sheet).  This is different than reporting an unpaid debt as a collection, which still shows on their books as an asset they are trying to collect.  Do not assume that you are clear of an obligation because it shows as a charge-off.  These debts can still turn in to judgements or companies offen sell these bad debts to collection companies, and if that company is successful in getting payment they share whatever is collected from the debtor.

Answer 2

It means the company that first lend you that credit sold your "debt" to a collection company and wrote you off as a tax loss. Now the collection companies will either call you 1000 times a day to try to collect that debt or try to sue you or both.

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