If a creditor charges off your account and/or places your account in collection, it almost always will report those actions to the credit reporting agencies.
(Learn more about credit reports and the type of information you’ll find on them.)
For accounting or tax purposes, creditors “charge off” debts. That means they no longer count the money you owe as a source of profit, but instead, count it as a loss. Usually, creditors charge off a debt about six months after you stop making payments on the account.
When a creditor charges-off or writes-off an account, it doesn’t mean the creditor will stop collection efforts. The creditor will often place the account for collection at about the same time. When an account is “placed for collection,” either the creditor acts as its own collector, or the creditor turns the debt over to an outside collection agency.
If a creditor charges off your account or places it in collection, it will notify the credit reporting agencies. When it does this, it must tell the reporting agency the date your delinquency began. That date is very important for figuring out how long the debt can continue to show up on your credit report on any tradeline. That date should not change if the account is transferred from a creditor to a collection agency or from one collection agency to another, if you make a payment, or dispute the account.