A charge-off is when a lender writes off your unpaid debt as a loss — typically after 180 days of missed payments. The debt still legally exists and collectors can still pursue you. It stays on your credit report for seven years.
A charge-off is an accounting action, not a debt forgiveness. It means the creditor — a bank, credit card company, or lender — has decided the debt is unlikely to be collected and has removed it from their active books as a loss. For most revolving accounts like credit cards, this happens after roughly 180 days of non-payment.
No. A charge-off does not erase what you owe. The original creditor may continue collection efforts, or they may sell the debt to a third-party collection agency. Either way, the balance remains legally collectable. You may receive collection calls and letters well after the charge-off date.
A charge-off is one of the most damaging negative marks a credit report can carry. It signals to future lenders that you stopped paying entirely — not just that you were late. Under the Fair Credit Reporting Act (FCRA), a charge-off can remain on your credit report for seven years from the date the account first became delinquent (the "date of first delinquency"), not from the charge-off date itself.
If a charge-off on your report is inaccurate — wrong balance, wrong date, already past the 7-year limit — you have the right to dispute it for free directly with the credit bureaus (Equifax, Experian, TransUnion) or with the lender that furnished the data. The CFPB explains this process at consumerfinance.gov. If the charge-off is accurate, no company can legally guarantee its removal. The FTC warns that credit repair companies charging fees to remove accurate negative information are often scams — anything they can do, you can do yourself for free.