Charge-Off
When a creditor writes off a debt as a loss after it becomes severely delinquent (typically after 180 days of non-payment). A charge-off doesn't erase the debt — you still legally owe it — but it signals to the credit bureaus and future lenders that you defaulted. Charge-offs remain on your credit report for seven years.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Collections
When a creditor turns an overdue debt over to a collection agency after the borrower fails to pay. Collection accounts are reported to credit bureaus and remain for seven years from the original delinquency date. Paying a collection removes your legal obligation but typically doesn't remove the account from your report.
- Delinquency
Failure to make a payment by its due date. A 30-day delinquency means you're 30 or more days past due. Delinquencies are reported to credit bureaus and can significantly lower your FICO score. The date of first delinquency starts the clock on the 7-year reporting period for negative items.
Frequently Asked Questions About Charge-Off
What does Charge-Off mean?
When a creditor writes off a debt as a loss after it becomes severely delinquent (typically after 180 days of non-payment). A charge-off doesn't erase the debt — you still legally owe it — but it signals to the credit bureaus and future lenders that you defaulted. Charge-offs remain on your credit report for seven years.
Is Charge-Off important for my FICO® score?
Understanding Charge-Off helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.