topic Re: Credit % used ratio is wrong??? in Understanding FICO® Scoring

Credit % used ratio is wrong???

Bullcrappy — Tue, 24 Apr 2012 20:03:41 GMT

Well got a rude awaking. i have had TrueCredit (transunion) service and it has me with scores between 670-698 for all three reporting agency's

Decode to pull my scores from MyFico.com and i have 630/623 (no score from Experian?)

In any case a large ding per My Fico is that i am utilizing 107% and 98% of available credit which is not true.
i have 3 credit cards which i keep under 30% (in fact all three are under 10% right now)
A mortgage that i have not been late on in 2 years.

From what i see i have an old Capital One act. that had been charged off and gone to collection. it says avail. credit limit 1000.00 but Balance 2718.00. so mi believe this is what is throwing my ratio off???

See below and please tell me what i can do.

thanks for any help!
Bull

Re: Credit % used ratio is wrong???

john398 — Tue, 24 Apr 2012 20:03:15 GMT

That should fall off 7 years from the last activity so in July 2013, its odd though the closed account is affecting your score, is it showing just on true credit or also on myfico as hight util?

Re: Credit % used ratio is wrong???

Bullcrappy — Tue, 24 Apr 2012 20:18:24 GMT

thats on MyFico.com

should those amounts be used to figure my credit utilization? i am not use 107% of my available credit. more like 5-10&

Re: Credit % used ratio is wrong???

omskillet — Tue, 24 Apr 2012 20:20:02 GMT

Bullcrappy wrote:
Well got a rude awaking. i have had TrueCredit (transunion) service and it has me with scores between 670-698 for all three reporting agency's

Decode to pull my scores from MyFico.com and i have 630/623 (no score from Experian?)

In any case a large ding per My Fico is that i am utilizing 107% and 98% of available credit which is not true.
i have 3 credit cards which i keep under 30% (in fact all three are under 10% right now)
A mortgage that i have not been late on in 2 years.

From what i see i have an old Capital One act. that had been charged off and gone to collection. it says avail. credit limit 1000.00 but Balance 2718.00. so mi believe this is what is throwing my ratio off???

See below and please tell me what i can do.

thanks for any help!
Bull

Charged off accounts that are still reporting a balance are factored into your utilization. The charged off balance is counted against your open available credit. So the $1000 limit you have for this card is not factored into your utilization. I believe there is info in one of the stickies about this.

Re: Credit % used ratio is wrong???

Bullcrappy — Tue, 24 Apr 2012 20:46:19 GMT

That is the case. That charged off Cap. One IS being used to calculate my utilization.

This is from MyFico.com

Re: Credit % used ratio is wrong???

kjm79 — Tue, 24 Apr 2012 21:10:37 GMT

Closed, including charged off accounts, that report BOTH a balance and a credit limit will be included in your utilization. You can either wait it out and let it fall off, or try and pay it. Visit the rebuilding forum for tips and suggestions on working with Cap 1.

Re: Credit % used ratio is wrong???

Bullcrappy — Tue, 24 Apr 2012 21:41:16 GMT

that really stings. my largest balance was 1295.00 and they have continued to charge interest and fees to get it upto 2718.00

and if an account is classified as "Charged off" it seems it should not be counted in my available credit and utilization.

thanks will research more.

bull

Re: Credit % used ratio is wrong???

Bullcrappy — Tue, 24 Apr 2012 21:50:02 GMT

Charge-Offs are no longer available to be utilized so it really makes no sense to factor them in.

Re: Credit % used ratio is wrong???

kjm79 — Tue, 24 Apr 2012 23:33:58 GMT

There's a whole lot about FICO that doesn't make sense. :smileywink: Right now it sounds like they are the only one reporting, and not a collection account as well?? That's good. Maybe you can work something out with them and get it paid to at least help your util. Then maybe GW??

Re: Credit % used ratio is wrong???

injustifiiable — Wed, 25 Apr 2012 00:05:55 GMT

Yeah, it sure does suck. I have a charged-off FPB card that is doing the same.

The balance will go to $0 once they sell the debt to a CA, so it's definitely best if you can just get them paid now. The CA will put another baddie on your file dropping the score even more. Cap1 may have you go through a debt "servicer", though.

Good luck!

Edit: EX doesn't sell FICOs to consumers anymore, in case you were wondering. You can get their PLUS score for 8 bucks. Not a true FICO but it's better than nothing.

Re: Credit % used ratio is wrong???

Walt_K — Wed, 25 Apr 2012 00:10:26 GMT

injustifiiable wrote:
Yeah, it sure does suck. I have a charged-off FPB card that is doing the same.

The balance will go to $0 once they sell the debt to a CA, so it's definitely best if you can just get them paid now. The CA will put another baddie on your file dropping the score even more. Cap1 may have you go through a debt "servicer", though.

Good luck!

Edit: EX doesn't sell FICOs to consumers anymore, in case you were wondering. You can get their PLUS score for 8 bucks. Not a true FICO but it's better than nothing.

Save the $8. Getting your EX report is worthwhile, but the PLUS score's pretty meaningless. If you want a meaningless EX score, got to Quizzle and get one for free.

Re: Credit % used ratio is wrong???

injustifiiable — Wed, 25 Apr 2012 00:13:12 GMT

Walt_K wrote:
injustifiiable wrote:
Yeah, it sure does suck. I have a charged-off FPB card that is doing the same.

The balance will go to $0 once they sell the debt to a CA, so it's definitely best if you can just get them paid now. The CA will put another baddie on your file dropping the score even more. Cap1 may have you go through a debt "servicer", though.

Good luck!

Edit: EX doesn't sell FICOs to consumers anymore, in case you were wondering. You can get their PLUS score for 8 bucks. Not a true FICO but it's better than nothing.
Save the $8. Getting your EX report is worthwhile, but the PLUS score's pretty meaningless. If you want a meaningless EX score, got to Quizzle and get one for free.

That's true. I forgot about Quizzle, there.

Re: Credit % used ratio is wrong???

kjm79 — Wed, 25 Apr 2012 00:14:13 GMT

Or creditsesame. Just remember, you get what you pay for.

Re: Credit % used ratio is wrong???

Bullcrappy — Wed, 25 Apr 2012 01:24:29 GMT

It seems a company called NCO is servicing the account for them.

Do i have to deal with them? Will they be willing to do a Pay for Delete? if so what % is a good starting point?

my max balance was 1258.00 and now they want 2700.00...

Re: Credit % used ratio is wrong???

Walt_K — Wed, 25 Apr 2012 01:33:57 GMT

NCO is a collection agency. I don't know how they are with Pay for Delete. You should try searching/posting over in the Rebuilding forums. I'm sure lots of people have posted about NCO over there.

Is the collection reporting? I thought when it went to collections, it didn't count in utilization. But maybe if it is just referred to a CA for collection, and not sold to a CA, then it can still report balance with the OC and count in utilization. I'm just speculating here. Maybe someone can clarify on that point.

Re: Credit % used ratio is wrong???

injustifiiable — Wed, 25 Apr 2012 01:37:00 GMT

Walt_K wrote:
NCO is a collection agency. I don't know how they are with Pay for Delete. You should try searching/posting over in the Rebuilding forums. I'm sure lots of people have posted about NCO over there.

Is the collection reporting? I thought when it went to collections, it didn't count in utilization. But maybe if it is just referred to a CA for collection, and not sold to a CA, then it can still report balance with the OC and count in utilization. I'm just speculating here. Maybe someone can clarify on that point.

Yep. If Cap 1 sold it to NCO, NCO would have it's own entry for the balance and the original CO would be at $0 balance. NCO just seems to be "servicing" it right now.

Re: Credit % used ratio is wrong???

MarineVietVet — Wed, 25 Apr 2012 03:43:52 GMT

john398 wrote:
That should fall off 7 years from the last activity so in July 2013, its odd though the closed account is affecting your score, is it showing just on true credit or also on myfico as hight util?

Date of last activity has nothing to do with the CRTP (Credit Reporting Time Period). Even updating the account can and will change the DoLA.

Collections (and charge offs) can report for up to 7.5 years from the DoFD (Date of First Delinquency) on the OC (Original Creditor) account that led to the collection or CO.

Re: Credit % used ratio is wrong???

MarineVietVet — Wed, 25 Apr 2012 03:47:30 GMT

omskillet wrote:
Charged off accounts that are still reporting a balance are factored into your utilization. The charged off balance is counted against your open available credit. So the $1000 limit you have for this card is not factored into your utilization. I believe there is info in one of the stickies about this.

As kjm said only if both the credit limit and balance are being reported is a charged off revolving account factored into utilization. You can read more about how this works here: Closing Credit Cards.

Re: Credit % used ratio is wrong???

MarineVietVet — Wed, 25 Apr 2012 03:50:13 GMT

Bullcrappy wrote:
Well got a rude awaking. i have had TrueCredit (transunion) service and it has me with scores between 670-698 for all three reporting agency's

Those scores sold at TrueCredit are called VantageScores and although Chase uses the VS in some of their decisions the VS's are not FICO scores and can't be compared in any way to FICO's.

Re: Credit % used ratio is wrong???

omskillet — Wed, 25 Apr 2012 04:59:05 GMT

kjm79 wrote:
Closed, including charged off accounts, that report BOTH a balance and a credit limit will be included in your utilization. You can either wait it out and let it fall off, or try and pay it. Visit the rebuilding forum for tips and suggestions on working with Cap 1.

Thank you for that correction! I was under the impression the credit limit was not included. Apologies for that error on my part.