What are charge-offs and collections, and why should I care about them?

Modified on Tue, 18 Apr 2023 at 10:29 PM

Charge-offs and collections are debts that have become very delinquent (normally 180 days past-due). Charge-offs and collections appear on your credit report and can affect your ability to qualify for credit. Depending on the laws in your state and local area, creditors may have the right to sue you to recover charge-offs and collections.

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