A charge-off means the creditor wrote your account off as a loss, usually after 180 days of non-payment. You still owe the money, and the account reports for seven years from the first missed payment. Charge-offs are often disputable for inaccurate balances, wrong dates of first delinquency, or continued reporting of a balance after the debt was sold to a collector.
Who it's for
People with charged-off credit cards, auto loans, or personal loans, especially ones that are also showing up as a separate collection account.
What to check on every charge-off
- The balance. Once a charged-off debt is sold, the original creditor should report a $0 balance. If both the original creditor and a collector report the full balance, that’s double-counting and disputable.
- The date of first delinquency. This controls when the item falls off. Re-aging, where the date moves forward, is illegal and more common than it should be.
- The status. “Charged off” versus “charged off, paid” versus “settled” matter to a human underwriter even when the score barely moves.
- Who owns it now. You can’t negotiate with a creditor that sold the debt, and you shouldn’t pay a collector that can’t prove it bought it.
How we work it
- Pull the original account history and compare it across all three bureaus; discrepancies between bureaus are themselves disputable.
- Dispute balance, date, and status errors with evidence.
- If a collector is also reporting it, validate the collection separately (see our collection removal page).
- If the debt is valid and you want it resolved, negotiate: pay-for-delete with a debt buyer, or a settlement with “paid in full” status at the original creditor.
- Build positive history alongside; a charge-off’s weight fades with time and clean payments.
Lawsuit risk
A charged-off debt can still be sued on until the statute of limitations runs. In Tennessee that’s generally six years for most consumer contracts; it varies by state, and a partial payment can restart the clock in some. Talk to us before you pay anything on an old charge-off, and talk to an attorney if you’ve been served.
Want it handled?
You can do everything on this page yourself. If you'd rather have Laura build the strategy and run the rounds, start with a free consultation.
Request a Free ConsultationRead the DIY guide →Related questions
Does paying a charge-off remove it?
No. It updates the status to paid or settled. The account stays for seven years from the first missed payment.
Can a charge-off and a collection both report for the same debt?
Yes, legally, if the original creditor shows a $0 balance after selling it. If both show a balance, dispute it.
Will settling a charge-off hurt my score?
Usually not meaningfully; the damage was done at charge-off. A "settled" status can matter to a manual underwriter, so negotiate for "paid in full" when you can.
Can I do this myself?
Yes. The disputes and validation letters are in the free DIY guide.
Free consultation
Not sure what this means for your file?
The consultation is free and it's a conversation, not a pitch. A house, a car, a fresh start, or just being done feeling embarrassed when someone pulls your credit: whatever it is, you'll leave knowing what your file needs, even if the answer is "do it yourself."
Month-to-month. No long-term contract. Cancel anytime.