Credit Card Charge Off Credit card charge offs are one of the most confusing pieces of credit card terminology, easily confusing those who are trying to figure out their credit card debt situation.
Those who are thinking about debt elimination or debt consolidation need to take a serious look at charge offs, needing to work to understand how they can and will affect their credit score and credit history.
There are many things that individuals fail to realize about charge-offs. The following information will help you to understand credit card debt charge off questions such as:
- what is credit card charge off mean,
- how you should approach the situation, and
- what can happen if you pay, or fail to pay, the debt.
- What is a Charge Off?
What Does It Mean Bank Charges Off a Credit Card A credit card charge-off is something that happens to those who have not paid their credit card payments for over 6 months.
Credit card companies are forced to consider the debt “bad debt” in their books, as they do not expect to get the money back.
By credit card charge off laws you still owe on your debt, however, as they still expect to be paid.
- Charge Offs and Your Credit
Bankruptcy vs Credit Card Charge Off Credit card Charge Offs can and will go onto your credit report, drastically altering your credit score for the worse.
This means that you were completely delinquent on a debt to the point that the company claims that they do not expect to get it back, i.e charge off credit card debt
You should expect to have a difficult time getting any form of credit or loan after you have a charge-off.
- Dealing with Charge Offs
One of the biggest issues that people face when dealing with charge offs revolves around payment. While some people believe that they should pay off their charge-offs, others do not.
The idea behind not paying the charge off stems from the fact that the charge-off is already on your credit score. Paying the charge-off simply adds that debt back to your credit score.
It may actually make your credit score worse if you pay off your charge-offs.
The best way to deal with the situation is to talk to a professional.
These professionals are going to be able to explain to you the best course of action with a charge-off. There are some people who have been led to believe that charge offs are completely removed from their credit score. These individuals fail to realize that this is a case-by-case basis, and that some individuals should not actually allow those debts to go unpaid.
A professional will be able to help you to better understand credit card charge off procedures and how to approach the situation while providing legal information on:
- credit card charge off laws and credit card debt charge off
- how to offer settlement on credit card charge off
- is it better to charge off your credit card or make a payment plan?
- what happens if the credit card co. charges off my account
- how much does a credit card company loose when they charge off?
- credit card charge off and bankruptcy chapter 13
Charge Off Credit Card Anyone looking for credit card debt elimination needs to keep an eye on their credit score. While debt consolidation may be nice, including a charge-off in that consolidation may make you worse off than you were before.
Take this information and compare it with your credit report to fully understand how you should approach your unique debt issues.