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charge offs

Established Member

charge offs

Correct me if I'm wrong, but I thought I read a thread stating that collections and chargeoffs are calculated in utilization.  If this is true, how can paying in full help utilization and hurt credit score if updated?
Message 1 of 7
6 REPLIES
Regular Contributor

Re: charge offs

I don't think collections are but, I know when I use the FICO simulator it included my CO.  My CO has a past due of about 300 bucks and it mapped that over to the FICO simulator for revolving credit..
Message 2 of 7
Moderator Emeritus

Re: charge offs

In FICO scoring, collections reported by collection agencies or other third-party collectors NEVER factor in util calculations. Charge-offs, however, can and usually do factor in util calculations...this unfortuantely can really tank your scores.
Message 3 of 7
Established Member

Re: charge offs

will paying charge offs lower my util and increase my score?
Message 4 of 7
Moderator Emeritus

Re: charge offs

Unlike collections, paying-off or paying down a CO might raise your FICO scores. Some have reported improvement in scores while others haven't. And yes, any improvement in scores would be directly related to lowering util.
Message 5 of 7
Highlighted
Established Member

Re: charge offs

thanks for info
Message 6 of 7
Established Contributor

Re: charge offs

Appreciate the info - now to get the collection to report as just that...instead of a crap installment - nice JDB, ruin one all the way to screwville!
Message 7 of 7