The conversation between human and AI assistant.
What is the difference between write off and loan waiver?
What about if a lender writes off a borrower's debt? Does that also affect their credit score?
Yes, it does. If a lender writes off a borrower's debt, it will typically be reported to credit bureaus as a charge-off, which will have a negative impact on the borrower's credit score. It's important to note, however, that even if a debt is written off, the borrower may still be legally obligated to repay it.