Collection/bad debt question

Anonymous · ‎02-14-2012

Would bad debt/collection accts reported balances count towards utilization rate??? Or utilization only calculated from open accts that are current? I did a search but haven't come up with a definite answer. I have 2 CC, one with 1250 cl 134 balance, other with 1000 cl with 100 balance. 2 collections and 5 charge offs from 5 years ago total to 52k would this be counted towards my UTilization rate?

kjm79 · ‎02-14-2012

They count if they are reporting BOTH the limit and the balance, whether open or closed.

ETA: Collections don't count in utilization though, unless categorized wrong under revolving accounts. Happens sometimes.

CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16

Creditdreamer · ‎02-14-2012

So if there's a paid CO showing 0 balance, does that then count positively toward util? For example I have an acct that was COed with Barclay. Balance is 0 but limit was 1250. Would that then add 1250 to my total amount available? Or does it only count against you if it's there?

Starting: EQ 498 TU 501 EX 485 (9/23/11)
As of 5/12: EQ 552 TU 591 EX 572
Credit Repair Journey Bump in the Road
As of 10/15: EQ 511 TU 588 EX 601
Discover TU Fico- 12/31/18: 694; CK EQ- 1/16/19: 634
Goal: All 3 above 700

Anonymous · ‎02-15-2012

I just pulled my cr from annualcreditreport.com and it states that my utilization rate is about 5%, is that pretty accurate?