Finance
An Arizona buyer's credit report shows a 'charge-off.' This means:
AThe account was fully paid and closed
BA creditor wrote off the debt as uncollectable—a serious negative credit event✓ Correct
CThe buyer was discharged from debt in bankruptcy
DThe account has a zero balance
Explanation
A charge-off means a creditor has written off the debt as uncollectable after non-payment, typically after 180 days. It is reported as a serious derogatory item on the credit report and significantly impacts credit scores.
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