What are "charge offs"?

What are "charge offs"?

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With regards to financing your car, a "charge off" is a loan which has been identified by the financing company as being uncollectible. Basically, the loan has gone into default, and therefore they're not able to collect that money back. These are things that are very, very damaging to your credit report, so you always want to make sure that you're keeping up your payment history correct. Make sure you're making those financial payments, and avoid any sort of loans which would be considered a "charge off" or uncollectible.