What does it mean when a creditor charges you off?



Answers:
Essentially it means that they are going to cease attempting to collect the debt, believing that the cost of collection will outweigh the reward. The bank writes it off as loss and reports you to the three major bureaus. They'll likely stop calling to collect but this will come back to bite you later when you apply for other loans like mortgages, etc. Many times charge offs will have to be paid before a mortgage company will finance you.

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