What does Charge-off mean?

Hazel,

Charge off is the way the creditor identifies an account on your credit report to be closed by the creditor themselves. If you have found that you do not know of this account or believe to be fraudlent, which is unfortunately most of the time the case, I would contact all three of the credit agencies and request a copy of your credit report.

I believe Equifax has a form online that you can use to report an inaccuracy on your credit report. I would recommend that you look at your credit report carefully. Do you have a credit monitoring company that you use to identify when something has changed on your credit report? A charge off on your credit report can hurt you.

Better yet, have you been a co-signer for anyone recently who has obtained an Verizon account? If so, that person may have defaulted on their bill and they are trying to contact you for payment. I would seriously obtain copies of your credit report immediately and seek out this problem. This can hurt you possibly if you don't take care of this problem.

alexandra, once you payoff a charge off, does it help your credit?? I had one and paid it off earlier this month.

Yes, it helps. A charged off is a negative remark that has already tarnished your credit scores. Now, if you have paid, it will show as "Paid charged off" raising your scores slightly.

Will other creditors still look bad @ it?? Or as bad??

It was already bad in the first place when it was charged off. However, when it's comes out as "paid charged off" there will be some change in their thoughts, although it's a negative remark. You will not get the best deal with this remark, but you did all in order to improve this derogatory remark.

Ok, thanks..... :D