What Is a Write-off on a Credit Report?
A write-off, also known as a charge-off, is the most negative disposition of an unsecured debt listed on a credit report. In the case of a secured debt, the default will be listed as a foreclosure or repossession. With unsecured debt, such as credit cards and signature loans, a lender will report a write-off when it has determined that the chances for repayment are no longer realistic. By posting a write-off, the lender is then able to list the default as a loss for tax purposes. Few things are more damaging to a person’s credit profile than a write-off.
