Credit Report Charge-Offs and What to Do About Them

 

 

According to Bankrate.com the number one reason for getting turned down on credit is because of a charge-off. A charge-off is often seen as a negative indication that you have not been responsible in the past with your finances and consequently you cannot be trusted in the future.

 

American consumers use credit cards to purchase what they want without giving thought to how to pay off their credit cards. The average consumer owes $10,000 to credit card companies. Financial advisors recommend having only one credit card and paying off the balance in full each month to avoid the pitfalls of overspending and poor money management.

 

A credit card is usually a small plastic card which is issued to the borrower from a issuance authority such as banks. The issuers pay for the products and services round the globe at millions of locations at a significant interest rate, on the borrowers promise to pay it back to the issuer with in a pre-mentioned span of time.