Charge
Offs - What are Charge Offs?
Charge
Offs: These are interesting methods creditors use to save on
taxes through decreasing their receivables. A charge off is where you
haven't paid your bill for a long time and it is apparent that you're
not going to pay it at all, or are unwilling to pay it. The company then
decides to take this prospective income off the books and write it off
as a loss to bad debt. When they do this it creates a new mark on your
credit report (thus starting the 7 year time frame all over). These marks
stay on your credit for 7 years from last date of activity. This means,
that if the charge off is updated for any reason, the time gets reset
and it is 7 years from that date.
Solution:
If you are having trouble paying your bills, and have old outstanding
debts, consider looking into a debt settlement or debt consolidation company.
Untitled Document
What Causes
Bad Credit:
Inquiries
Late Payments
Charge
Offs
Repossession
Foreclosure
Judgements
Bankruptcy
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