How Long Does a Charge-Off Stay on Your Credit Report?

A charge-off occurs when a creditor writes off a debt as a loss after you have missed payments for an extended period — typically 120 to 180 days, depending on the type of debt and lender policy. This is an accounting action by the creditor, not a legal forgiveness of the debt. The balance remains legally owed.

After charging off a debt, the original creditor may continue to attempt collection, sell the debt to a third-party debt collector, or assign it to a collection agency. In any of these cases, you may still receive collection calls and the debt remains collectible depending on your state's statute of limitations on debt. For related strategies, see our guide on dismissing credit card lawsuits.

The Fair Credit Reporting Act (15 U.S.C. § 1681c) limits how long most negative information can appear on your credit report. A charge-off may remain for seven years from the date of the first delinquency that led to the charge-off — not from the date the account was charged off. Understanding this matters when you are working to remove late payments from your credit report. This distinction matters because the first delinquency date is typically earlier.

For example, if you missed your first payment in January 2020 and the creditor charged off the account in July 2020, the seven-year clock runs from January 2020. The charge-off should no longer appear on your credit report after January 2027, regardless of whether the debt was ever paid or sold to a collector.

If a collection account was created when the debt was sold, that account also must be removed no later than seven years from the original date of first delinquency. Collectors cannot restart the seven-year clock by selling debt to another collector.

A charge-off is one of the most damaging items that can appear on a credit report. It signals to future lenders that you failed to repay a debt as agreed. FICO scores, which range from 300 to 850, weight payment history at 35% — making charge-offs particularly impactful.

The impact of a charge-off typically diminishes over time, particularly as you build a positive payment history on other accounts. Lenders applying for mortgages or auto loans and leases may still scrutinize charge-offs during manual underwriting even after several years. A charge-off does not automatically disqualify you from future credit — but it may affect the interest rates and terms you are offered. For example, a car lease has specific minimum credit score requirements.

Paying a charged-off debt does not remove it from your credit report. The status may update from "charged off" to "charged off — paid" or "settled," which some lenders view more favorably, but the negative item may still remain for the full seven-year period.

Some creditors may agree to a "pay for delete" arrangement — similar to the options discussed in our guide on removing collections from your credit report — — removing the tradeline in exchange for payment — but this is not required by law and creditors are generally not obligated to agree. If you negotiate such an arrangement, get it in writing before making payment.

Settling a charged-off debt for less than the full balance may result in the lender issuing a 1099-C form for the forgiven amount, which the IRS typically treats as taxable income. Consult a tax professional if you are settling significant debt.

You have the right to dispute inaccurate or outdated information on your credit report at no charge. Checking your credit score history alongside your report helps you understand the full picture. If a charge-off appears past the seven-year limit, or if the information is factually incorrect (wrong balance, wrong date of first delinquency, account is not yours), you can dispute it with each bureau — Equifax, Experian, and TransUnion — that shows the error.

Submit your dispute in writing and include supporting documentation. The credit bureau has 30 days to investigate and must notify you of the results. If the bureau verifies the information as accurate and you still disagree, you may add a 100-word consumer statement to your file.

You can access free weekly credit reports from all three bureaus at AnnualCreditReport.com — the only federally authorized free report source. Review each report carefully, as errors are not automatically corrected across all three bureaus.