Quick answer
A charge-off means a creditor has written a delinquent debt off as a loss for accounting purposes. It can still hurt your credit, you may still owe the debt, and the creditor may sell or place it with a debt collector.
Why it matters
The practical meaning.
Charge-off language is often misunderstood as debt forgiveness. For credit and collection decisions, treat it as a serious delinquency that still needs verification, documentation, and a plan.
Key points
a.
A charge-off is not the same as cancellation or deletion from credit reports.
b.
Check whether the original creditor, a collection agency, or both are reporting related information.
c.
Dispute inaccurate balances, dates, duplicate reporting, or account ownership with supporting documents.