What Is a Charge-Off, Do You Still Owe It, and Can It Come Off Your Credit Report?
A charge-off is an accounting entry, not forgiveness. Your lender has written the account off its books as a loss, but the debt still exists, and the account will usually sit on your credit report as a negative item for about seven years. What you can change is anything on that entry that is wrong. This guide is part of our credit scores hub.
Key takeaways
- Under federal banking guidance, closed-end loans are generally charged off at 120 days past due and open-end accounts like credit cards at 180 days, per the Federal Reserve.
- A charge-off does not cancel what you owe. The CFPB says a debt does not generally expire or disappear until it is paid.
- The Fair Credit Reporting Act limits reporting of charged-off accounts to seven years, with the clock starting 180 days after the delinquency that led to the charge-off.
- Accurate charge-offs generally stay. Inaccurate details, such as a wrong date of first delinquency or a balance that is not yours, can be disputed.
What does charged off mean on a credit report?
It means the creditor has stopped carrying your account as an asset it expects to collect in the normal way. Banks follow a shared rule for when that happens. The Federal Reserve's Uniform Retail-Credit Classification and Account-Management Policy says closed-end retail loans that become past due 120 cumulative days, and open-end retail loans that become past due 180 cumulative days, "should be classified loss and charged off."
In plain terms:
- Personal loans and other installment loans (closed-end) generally charge off around 120 days late.
- Credit cards and other revolving lines (open-end) generally charge off around 180 days late.
On your report, the account usually shows a status such as "charged off" along with the history of late payments that came before it. Because payment history is the largest part of a FICO Score at 35%, per myFICO, a run of late payments ending in a charge-off is one of the heaviest negative items a report can carry.
Do you still owe a charged-off debt?
Yes. The charge-off changes the lender's books, not your contract. The CFPB puts it directly: a debt "doesn't generally expire or disappear until its paid." After a charge-off, the original creditor may keep trying to collect, place the account with a collection agency, or sell it to a debt buyer.
What can change over time is the creditor's ability to sue. Most states have statutes of limitations of three to six years for debts, according to the CFPB, though some are longer and the rules vary by type of debt and state. The CFPB also warns that "making a partial payment or acknowledging you owe an old debt, even after the statute of limitations expired, may restart the time period." Before you pay anything on an old account, read our guide to the statute of limitations on debt. If you have already been served, go to what to do when you are sued by a debt collector first, because missing a court deadline can lead to a judgment even on a time-barred debt.
What is the difference between a charge-off and a collection?
They are two stages that often appear as two separate lines on your report.
| Charge-off | Collection account | |
|---|---|---|
| Who reports it | The original creditor | A collection agency or debt buyer |
| What it means | The creditor wrote the balance off as a loss | Someone is now collecting the debt |
| Do you still owe it? | Yes | Yes, to whoever now owns or services the debt |
| Reporting limit under the FCRA | 7 years, clock starts 180 days after the delinquency began | Same 7-year clock, tied to the same original delinquency |
| What to check | Balance, dates and status match your records | Balance, dates and that the debt is yours |
| Can it be disputed? | Yes, if any detail is inaccurate | Yes, if any detail is inaccurate |
One thing to check: the same debt should not be counted twice as an active balance. The CFPB lists "same debt listed more than once, possibly with different names" as a common credit report error.
How long does a charge-off stay on your credit report?
The CFPB says a credit reporting company "generally can report most negative information for seven years." For charge-offs, the Fair Credit Reporting Act sets out exactly when that clock starts. Section 1681c bars reporting of accounts "placed for collection or charged to profit and loss" that are older than seven years, and says the seven-year period begins "upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action."
That means the clock is anchored to when you first fell behind, not to when the account was charged off, sold or paid.
Worked example: if the payment that started the delinquency was due March 1, 2026, the 180-day period ends August 28, 2026, and seven years from then is August 28, 2033. After that date the charge-off should no longer appear on a standard credit report. The CFPB notes exceptions for reports used for jobs paying more than $75,000 a year and for more than $150,000 of credit or life insurance.
Paying does not restart the reporting clock. Because the FCRA ties the seven years to the original delinquency, paying or settling a charged-off account changes its balance and status, not its removal date. Be careful with the separate lawsuit clock, though: under some state laws a payment can restart the statute of limitations, as the CFPB explains.
Can a charge-off be removed from your credit report?
It depends on whether it is accurate.
If it is accurate, there is no rule that requires removal before the seven years run out. When you dispute, the CFPB explains, the furnisher "might determine that the information about you is accurate and should not be updated or removed." Some people ask the creditor or a collector to delete an account in exchange for payment. Our pay for delete letter guide explains what that request can and cannot do; nobody can promise a deletion.
If anything is inaccurate, you have a real path. The CFPB says that if a furnisher's investigation shows it "provided wrong information about you, or the information cannot be verified, the furnisher must update or remove the information." The CFPB's list of common errors gives you a checklist for a charged-off account:
- Accounts that are not yours, including mixed files and identity theft
- Accounts incorrectly reported as late or delinquent
- An incorrect date of last payment, date opened, or date of first delinquency
- An incorrect current balance or credit limit
- The same debt listed more than once
- Closed accounts reported as open
The date of first delinquency matters most, because it controls when the entry must come off. If it has been moved later (sometimes called re-aging), the charge-off could stay past its legal limit.
How do you dispute an inaccurate charge-off?
The CFPB recommends disputing with both the credit reporting company and the company that furnished the data:
- Pull your reports. Look at how each of Equifax, Experian and TransUnion shows the account.
- Write to each credit reporting company that shows the error. Include your contact details, each error with the account number, why it is wrong, a request to correct or remove it, a copy of the report with the item highlighted, and copies (not originals) of supporting documents.
- Write to the furnisher. Furnishers "generally must investigate and respond to your dispute within 30 days," per the CFPB.
- Keep records. The CFPB suggests certified mail with a return receipt.
- If the result does not change, you can ask the credit reporting companies to add a statement explaining your dispute, or submit a complaint to the CFPB.
Should you pay a charged-off account?
Paying can stop collection, may end the risk of a lawsuit, and shows the balance as paid or settled, which a future lender reading your full report can see. It will not by itself delete an accurate charge-off. Settling for less than the full balance has its own effects on your report; see how debt settlement affects your credit before you agree to a settlement. If several charged-off accounts are part of a larger debt problem, the debt relief hub compares the options.
Who this is for
You have an account showing "charged off" and want to know whether you still owe it, when it will come off, and whether anything on it is wrong.
What to do next
- Pull all three reports and find the date of first delinquency on each charged-off account.
- Check every detail against the CFPB error list above and dispute anything inaccurate.
- Before paying an old debt, check the statute of limitations on debt in your state.
- When you are ready to borrow, see what your band can expect in personal loans by credit score.
Common questions
Is a charge-off the same as debt forgiveness?
No. A charge-off is the lender writing the account off as a loss. The CFPB says a debt does not generally expire or disappear until it is paid, so the creditor or a buyer can still try to collect.
How many days late before a charge-off?
Federal Reserve guidance says closed-end loans should be charged off at 120 days past due and open-end accounts such as credit cards at 180 days past due.
Does a paid charge-off still hurt my credit?
It still appears as a negative item until its reporting period ends, because the late payments and charge-off happened. Payment changes the status and balance, not the FCRA removal date.
When does a charge-off fall off my report?
Seven years after a 180-day period that starts when the delinquency began, under 15 U.S.C. 1681c(c). Your report's date of first delinquency is the starting point.
Can I dispute a charge-off that is accurate?
You can file a dispute, but if the furnisher confirms the information is accurate it does not have to remove it. Disputes work when something on the entry is wrong or cannot be verified.
How we researched this
We read the Federal Reserve's charge-off policy, the text of 15 U.S.C. 1681c, four CFPB consumer pages and myFICO's score breakdown on October 1, 2026. The timeline dates are our own calculation from the statute.
Related: Pay for delete letter · Raise your credit score before a loan · Adverse action notice explained · Next step: personal loans by credit score
Sources
- Board of Governors of the Federal Reserve System, "Uniform Retail-Credit Classification and Account-Management Policy," accessed October 1, 2026.
- Legal Information Institute, "15 U.S. Code § 1681c - Requirements relating to information contained in consumer reports," accessed October 1, 2026.
- Consumer Financial Protection Bureau, "How long does information stay on my credit report?" accessed October 1, 2026.
- Consumer Financial Protection Bureau, "Can debt collectors collect a debt that's several years old?" accessed October 1, 2026.
- Consumer Financial Protection Bureau, "How do I dispute an error on my credit report?" accessed October 1, 2026.
- Consumer Financial Protection Bureau, "What are common credit report errors that I should look for on my credit report?" accessed October 1, 2026.
- myFICO, "How are FICO Scores Calculated?" accessed October 1, 2026.
- Consumer Financial Protection Bureau, “Can debt collectors collect a debt that's several years old?”
This page is general information about credit reporting, not legal or financial advice. Statutes of limitations and debt collection rules vary by state; talk to a lawyer about your own debt. No action can promise removal of accurate information from a credit report. Loans Generator is not a loan provider or broker and does not offer credit repair services.