Utilization Newb seeks an education!

[Anonymous]

I have a car loan 17000/26000; CC 1400/3500; CC2 2000/3000; and CC3 120/500.  Does my car loan affect my Utilization?  What is Utilization?  From what I have read so far, if I improve my Util; it should improve my CR.  What is the Difference between individual util and any other util? 

How long does Collection Debt stay on your account even if they are closed and paid off?

Can I dispute or write the big 3 and have them take off any delinq. accounts that has been paid off and closed in my CR for more than 3 years?

I have been deployed too many times for too long and finaly have time to fix my CR and continue my life and goals.

"Knowledge is power......Power IS Knowledge"

[llecs]

Welcome to these forums!

A car loan does not factor into utilization so as long as the car note is reporting as an installment loan.

Utilization is your balance compared to your overall credit limit expressed as a percentage.

CC1: 1400/3500 = 40%

CC2: 2000/3000 = 67%

CC3: 120/500 = 24%

Overall: 3520/7000 = 50.3%

Utilization is the easiest and fastest way to improve your score. FICO looks at each individual util% and also looks at overall util%. Anything less than 10% is best. In your example, for best results, pay off CC1 to $0, and let $5 or so report to CC2 & 3. You'd easily see increases doing that (40-55 or so points, YMMV).

Anything negative will drop off roughly 7 years from the date you first went deliquent. TU and EX CRs (directly from their own website) include a drop-off date for most negative accounts.

There's a science to removing negative info. Most anyone can help. Read, Read, and read Credit Scoring 101. Study these forums.

Message Edited by llecs on 03-20-2008 11:29 PM

[Anonymous]

Thank you for the info.  This forum has been a great help; it has given me a path to follow.  Thanks again....I'll keep you updated on my success.