If your Kikoff account was closed, it may have been “charged off.” This happens when we haven’t received payments for over 180 days past your due date. Charging off an account is a standard practice in finance, but it’s important to understand what this means and what you can do next.
What Is a Charge-Off?
When an account is charged off, it means we’ve marked it as a loss because payments are very overdue. This doesn’t erase the debt, but it does show up on your credit report as delinquent, which can hurt your credit score. This might make it harder to get loans or credit in the future.
Should I Pay Off a Charged-Off Account?
You don’t have to pay off a charged-off account with Kikoff. We won’t contact you about it, send it to collections, or take legal action.
However, paying it off might still help you in the case of Future Credit Applications. Paying off a charge-off might not boost your score immediately, but some lenders see unpaid charge-offs as risky and require them to be settled before approving new credit.
What Should I Do Next?
- Check Your Credit Report: See how the charge-off is affecting your credit.
- Decide on Your Goals: If you’re applying for new credit, paying off the account might help you meet lender requirements.
- Ask Us Questions: If you’re unsure about anything, contact Kikoff support. We’re here to help.
- Make a Payment (Optional): If you choose to pay off your account, we can provide the details you need. It’s up to you. Please keep in mind that paying off a charged-off account with Kikoff will NOT result in that account’s removal from your credit report.
Key Points to Remember
- Accounts are charged off after 180 days of missed payments and can lower your credit score.
- Kikoff doesn’t require repayment, won’t pursue collections, and won’t take legal action.
- Paying off a charge-off could help you with future lenders or prevent issues with other creditors.
Have more questions? Please reach out to our Kikoff support team! We’re here to guide you on your credit-building journey!