What do credit report statuses mean?
Two statuses on the TransUnion credit report cause the most questions: "charged off as bad credit" and "permanent assignment government". Here’s what each one means.
Charged off as bad credit
The applicant stopped paying a creditor, and the creditor wrote the debt off as a loss, usually selling it to a collection agency. The same debt can then appear twice on the report: once from the original creditor and once from the debt collector.
Permanent assignment government
The applicant defaulted on federally guaranteed student loans and the creditor filed a claim with the government to recover the loan. The original accounts are closed but stay on the report for 7 years from the first missed payment, and the borrower still owes the debt.
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