What Is a Charge-Off?
A charge-off is when a lender writes off a debt as unlikely to be collected, usually after several months of missed payments — often around 180 days for credit cards in the US. A charge-off is an accounting step: the debt is still owed and may be collected by the lender or sold to a collection agency.
Credit Report Impact
A charge-off is recorded on credit reports and can remain for up to seven years from the original delinquency.
Paid vs. Unpaid
If the debt is later paid or settled, the account can be updated to show that, although the charge-off history remains.
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🔗 Related Terms
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.