 TITLE: What Is a Charge-Off? CONTENT: What Does a Charge-Off Mean on Your Credit Report?\n--------------------------------------------------\nCreditors typically charge off accounts after they've been delinquent—gone without any scheduled payments—for six months. After the first month's delinquency, the account entry will move from the \"Accounts in Good Standing\" section of your credit report to a section titled \"Negative Items\" or \"Negative Accounts.\" Its entry will indicate the outstanding balance on the account and how long it has gone unpaid in 30-day increments up to 180 days. If the creditor decides after 180 days to charge off the account, its entry and the outstanding balance will still appear on your credit report, but it will be noted as charged off.\nIf the creditor subsequently sells your debt to a collection agency, the balance due on the charged-off account will change to zero, but the charged-off account will remain on your credit report for seven years. At that point there's nothing you can do to remove it unless you can prove the entry is inaccurate.\nNote that a charge-off does not mean your debt is forgiven. You are still legally responsible for repaying the outstanding amount. As long as the account entry is designated as a charge-off and displays an outstanding balance, you can contact the creditor to make payment. Doing so will change the account designation from \"Charge-Off\" to \"Paid Charge-Off.\" The listing will still remain on your credit report for seven years. Paid charge-offs are still considered derogatory entries on your credit report, but some lenders view them as less negative than unpaid charge-offs. END