topic Re: DEROG with UTIL% Question in General Credit Topics

DEROG with UTIL% Question

Anonymous — Thu, 20 Dec 2018 02:03:08 GMT

I have a DEROG with UTIL%... It's a little over 140%, and it's under the category of REVOLVING in the TU report... Also, it was updated in November 2018. Question is if it's removed or paid off, will it improve the credit score? I recently paid the balance off of $429 on this account I'm talking about, and the original limit was $300. The account was openened in 2013 or 2014.

Appreciate any reply

Re: DEROG with UTIL% Question

Anonymous — Thu, 20 Dec 2018 02:04:38 GMT

Forgot to input something...

Will it lower the credit UTIL% or raise the credit score?

Currently credit UTIL% is 30...

Re: DEROG with UTIL% Question

thornback — Thu, 20 Dec 2018 02:30:29 GMT

@Anonymous wrote:
I have a DEROG with UTIL%... It's a little over 140%, and it's under the category of REVOLVING in the TU report... Also, it was updated in November 2018. Question is if it's removed or paid off, will it improve the credit score? I recently paid the balance off of $429 on this account I'm talking about, and the original limit was $300. The account was openened in 2013 or 2014.

Appreciate any reply

Hi Duke -

Yes, if you pay the balance on a chargeoff the account will be updated to reflect a $0 balance, which will reduce both individual card utilization and overall utilization. The account will be officially closed and further updating of negative info will cease, allowing the derog to age. You will more than likely see a score boost from the balance updating to zero - how much depends on your total credit limit vs. current util.

If the account is completely removed, whether or not you will see a significant score increase depends on if any other derogs are on your reports and whether or not removal drops your AAoA and / or AoOA. You may gain points for the decrease in util, but none for account removal; or you may actually lose points from removal which could, essentially, offset any gains from the decreased util.

Regardless - the payoff was a good decision for the long run.

Re: DEROG with UTIL% Question

Anonymous — Thu, 20 Dec 2018 02:54:34 GMT

Hi tmr

Thanks for that information

I have other DEROGS than the one stated, but these other ones don't have a balance and stopped reporting years ago. Not sure what to do about these. Appreciate any input.

Re: DEROG with UTIL% Question

thornback — Thu, 20 Dec 2018 03:51:53 GMT

My suggestion --

Create a new post in the 'Rebuilding Your Credit' forum and list all of your negatives. Be sure to include the following information from your credit reports:

1. Account Type (revolving / loan)

2. Type of Derog / Negative (charge-off, collection, late pays (30, 60, 90, 120-days), repo, judgment, tax lien, foreclosure, etc.)

3. Owner of the debt (does the original creditor still own the debt or has it been sold to a collection agency? If sold to a collection agency, is there both a collection tradeline and original creditor tradeline showing on your reports?). Include the name of the original creditor and / or collection agency.

4. DOFD (Date of First Delinquency) - when did the account first become delinquent and stay delinquent?

5. Amount of original debt for each derog (charge-offs / collections).

Providing the above info (along with anything else you think may be relevant) will allow others to chime in with specific advice on how best to deal with each item. For instance, someone may have dealt with one of the creditors or collection agencies before and able to give some insight; we can also tell you if its best to attempt a pay for delete (PFD), start a Goodwill campaign, dispute, or if you'd be better off leaving it alone and letting it drop off once the reporting statute is met (or to perhaps request an Early Exclusion from the bureaus). We can better help you develop a game plan if we know exactly what you are dealing with; otherwise, you'll likely just receive random & overly generalised advice which may seem confusing and overwhelming.

@Anonymous wrote:
Hi tmr
Thanks for that information
I have other DEROGS than the one stated, but these other ones don't have a balance and stopped reporting years ago. Not sure what to do about these. Appreciate any input.

Re: DEROG with UTIL% Question

Anonymous — Sun, 30 Dec 2018 06:54:52 GMT

Hi Tmr

When you say AAoA and / or AoOA

What does AoOA mean?

I found out what AAoA means, Average Age of Accounts.

Re: DEROG with UTIL% Question

CreditInspired — Sun, 30 Dec 2018 07:01:58 GMT

Hi OP
AoOA = Age of oldest account

Re: DEROG with UTIL% Question

thornback — Sun, 30 Dec 2018 07:02:05 GMT

AoOA - Age of Oldest Account

There's also -

AoYA - Age of Youngest Account

AAoA, AoOA, and AoYA all factor into FICO scoring and changes to them can either positively or negatively affect your scores. You can browse through the 'Understanding FICO Scoring' section of the forum for more info and data points. Interesting stuff worth knowing about.

@Anonymous wrote:
Hi Tmr
When you say AAoA and / or AoOA
What does AoOA mean?
I found out what AAoA means, Average Age of Accounts.

Re: DEROG with UTIL% Question

Anonymous — Sun, 30 Dec 2018 16:43:36 GMT

@Anonymous wrote:
I have a DEROG with UTIL%... It's a little over 140%, and it's under the category of REVOLVING in the TU report... Also, it was updated in November 2018. Question is if it's removed or paid off, will it improve the credit score? I recently paid the balance off of $429 on this account I'm talking about, and the original limit was $300. The account was openened in 2013 or 2014.

Appreciate any reply

This sounds exactly like my First Premier charge off. I paid mine in full the other day since they refused several times to do a PFD (pay for delete). It will eventually report a 0 balance probably helping with your score and utilization. Regardless, a paid charge off will look way better in future manual reviews as it'll be paid in full. After that, I'd saturate with disputes until it's gone since they will have their money already and hopefully get tired of responding to the bureaus request for updates.

If it is indeed First Premier, they can and will mail or fax you a letter stating it's paid in full. Good luck!