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Can Your Employer Get A Copy Of Your Credit Report ?
 The credit report of an individual can be accessed only by those people and organizations that are specified by the FCRA to have legal rights to do so. These include insurers, creditors, businesses, and employers who need the information of credit reports to assess applications for employment, renting a house, insurance, or credit. More..
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What Is A Charge Off On A Credit Report ?
Charge off is considered to be one among the most rigorous credit felonies or delinquencies that an individual can get on his credit report. Although it is not as severe as a foreclosure or bankruptcy, it is certainly in a similar tier, and must be shunned at any cost. If the payments of a particular credit account are not made within the stipulated time, the account is put in a “collection” status. Thereafter, if the due amounts are not paid even after 6 months, the account finally goes into the 'charge off' status. |
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The corporations file a statement showing the profit and loss every year with the Internal Revenue Service, describing the company’s losses, profits, and bad debts in details. The bad debts and losses are usually charged-off as an expense to the concerned business. It is quite natural for large corporate houses to claim these debts and losses and hence the account status of non-payment has been appropriately termed as charge off.
It is a popular myth that the charged off amount in the credit account is cancelled by the creditor. Although the charged off amounts are written off in the end of tax year, the accountholder is still accountable for them and the entire amount is collectible legally. If the due amount exceeds beyond $1,500, the creditor can even file a lawsuit against you for the collection of the outstanding debt. Also, no credit card purchases can be made on the charged off account.
Another important thing to bear in mind is that charge off account history remains in the credit report even after you pay off the outstanding debts. It remains as a major blot on the credit report for a period of 7 years from the date of the credit delinquency.
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