Bad Debt Credit Scoring Third Party Collections 
CreditStrong for Business
AUGUST 27, 2024
If a consumer has an unpaid debt on an existing credit account, the original lender will eventually close the account and charge off the bad debt. Generally, these debts are reported to the credit bureaus and remain as a negative entry on your credit history for seven years. What is a Charge-Off?
Fundera
JULY 16, 2018
A charge-off is when you’re so late on your credit card or loan payments that the lender expects you’ll never pay, so they remove the anticipated income from their ledger and document the loss as bad debt. Technically, that bad debt is “charged-off.” Technically, that bad debt is “charged-off” or “written-off.”.
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