A charge off is when a consumer is very late on a payment (usually 120 days or more) that the credit company claims the debt as a loss

Missing payments for debt owed or delinquencies on your credit report can cost you a lot of time and money, but it is never too late to clean up your act and start improving your credit. Here are five helpful tips to get you on the right path.

Charge-offs occur when creditors write off your account balance as a "bad debt," which can significantly reduce your credit score. There are actions you can take to avoid charge-offs, and get them removed from your credit report.