What Does Charged Off As Bad Debt Profit-And-Loss Write Off Mean On Your Credit Report
It means that you fail to pay the amount due within the time period specified and your Creditor now treats the uncollectible amount as Bad Debt to be written off as loss and deducted from Profit & Loss account . When you account is “Charged Off” , then it doesn’t mean that you are no longer liable to pay but, still you are liable to pay your dues, so the creditor / lender demands from you to pay the dues through notice or any other means and informs the collection agency about the recovery of remaining amount payable by you. The negative effect of charged off as bad debt profit and loss write-off on your credit report and credit scoring is huge for atleast seven years. During that period, your account will be removed and new credit card issuer may also decline your application if you applied for new credit card issuance as charged off is a negative impact on your credit scoring. The card issuer may also impose limitations on you credit facility if you ...