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Established Member
lookingforhome
Posts: 43
Registered: ‎12-03-2007

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?
Regular Contributor
GETNUMBERSUP
Posts: 226
Registered: ‎01-30-2008

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..
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

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.
Established Member
lookingforhome
Posts: 43
Registered: ‎12-03-2007

Re: charge offs

will paying charge offs lower my util and increase my score?
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

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.
Established Member
lookingforhome
Posts: 43
Registered: ‎12-03-2007

Re: charge offs

thanks for info
Established Contributor
beach123
Posts: 570
Registered: ‎05-02-2007

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!

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