@Anonymous wrote:I was under the impression that collections did not matter that much if they were close to the 7 year mark. My credit limit is now listed as $7,600 ($1,000 from my Credit One plus the $6,600 from AU on Chase). I wonder what the impact will be from the additional $9,000 that I will get from the other cards.
By the way, what is a good credit utilization ratio? Right now, I have less than 1%. I have exactly 10% on each of the Chase and BofA cards.
That would be mistaken 
. With how the algorithm works a derogatory like a collection whacks you right out the gate with the bucketing calculation thereby limiting your maximum score as you saw reflected in your score change.
TT and Slipper are right: the deletion of a tradeline doesn't get reflected in the monitoring solution, and the inquiry was just the trigger. This is a known fact and can be taken as gospel TBH.
That utilization ratio is fine, you can play with how many cards report balances, we've found one to be optimal for everyone but for example I don't take a drop with 2 cards reporting a balance, and some others don't get a drop until much later. Presumably that's based on aggregate number of revolving tradelines but it hasn't been firmed up yet with solid data. I really wouldn't worry about it unless you're applying for something major in the near future as it's points in the margin for most people.
