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Established Member
Posts: 43
Registered: ‎12-03-2007
0

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
Posts: 226
Registered: ‎01-30-2008
0

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
Posts: 16,385
Registered: ‎03-12-2007
0

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.
Credit Profile - FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Established Member
Posts: 43
Registered: ‎12-03-2007
0

Re: charge offs

will paying charge offs lower my util and increase my score?
Moderator Emeritus
Posts: 16,385
Registered: ‎03-12-2007
0

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.
Credit Profile - FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Highlighted
Established Member
Posts: 43
Registered: ‎12-03-2007
0

Re: charge offs

thanks for info
Established Contributor
Posts: 570
Registered: ‎05-02-2007
0

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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