Most people think that a charged-off credit card will only lower their credit score by 5 to 10 points. If this were the case, there would be thousands of people that would have several unpaid charge-offs and still have good credit. Are you sitting down? Recent late payments along with a charge-off, can cause a 50 to 100-point decrease in a person’s credit score quickly.
If you have more than one account that has charged-off and you are getting calls and letters from bill collectors, you could be easily overwhelmed. If you have accounts that are in danger of being charged-off or have accounts that are charged-off and you don’t know which way to turn, go to the products tab and learn how to avoid a charge-off or how to make sure your charge-off does not turn into a garnishment.