topic Re: Collection/bad debt question in Rebuilding Your Credit

Collection/bad debt question

Anonymous — Tue, 14 Feb 2012 21:35:42 GMT

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?

Re: Collection/bad debt question

kjm79 — Tue, 14 Feb 2012 21:46:05 GMT

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.

Re: Collection/bad debt question

Creditdreamer — Wed, 15 Feb 2012 01:14:17 GMT

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?

Re: Collection/bad debt question

Anonymous — Thu, 16 Feb 2012 03:13:36 GMT

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