Common questions about the Credit Report

Some common questions we have received regarding the credit report

A collection of some common questions we've received regarding specific items on the credit report.

What does "Charged off as bad credit" mean?

This means the applicant stopped or did not start providing payments to the creditor listed.

Seeing "Charged off as bad credit" is never a good sign. It means that the creditor has not received the minimum payments from the person for some time/at all. The company considers the debt a loss and will either sell or transfer the delinquent debt to a collection agency or debt buyer.

At that point, one debt may now appear twice on the credit report. One debt listing will be from the original company money was borrowed from. The second listing is from the debt collector.

What does the status "permanent assignment government" mean on the credit report?

This means the applicant defaulted on previous student loans.

Although the original accounts are now closed, they are still a part of the credit history. When a borrower defaults on student loans that are guaranteed by the federal government, the creditor can file a claim with the government to recover the amount of the loan. However, the borrower still owes the debt. The government can consolidate the accounts into a new loan for the collection of the debt. The status "claim filed with government" indicates that has taken place. 

The original student loan accounts will remain on the report for seven years from the initial missed payment that led to the claim being filed with the government.