topic Re: cap1 charge off utilization question in Rebuilding Your Credit

cap1 charge off utilization question

Anonymous — Mon, 23 Jun 2014 21:21:10 GMT

I have a cap1 charge off that is about a year old. The limit is only 400 dollars, the amount due is 247. Which is 61.75% uti. If they dont do PFD, which it doesnt sound like they will. Will paying this off increase my score? I know paying off a charged off account can lower my score, but in this case with the uti being high, could it help me?

Re: cap1 charge off utilization question

Whitneyy — Mon, 23 Jun 2014 21:45:08 GMT

The amount is still being factored into your utilization so yes, paying it all will help in the long run.

Re: cap1 charge off utilization question

JennaD075 — Mon, 23 Jun 2014 21:49:48 GMT

I didn't know charged off accounts go towards your utilization. If you have 2 cards and 1 charge off total of 3 cards that 1 charged off one is still being calculated into your utilization score?

Re: cap1 charge off utilization question

Anonymous — Mon, 23 Jun 2014 21:55:22 GMT

Well right now I have 1 active credit card. The old capitol one does not show up as part of my credit limit. The way I understand it, since cap1 is the one reporting and not a CA it can still factor into Utilization somehow.

The score simulator shows a decent gain from paying it off.

Re: cap1 charge off utilization question

JennaD075 — Mon, 23 Jun 2014 21:57:48 GMT

Oh that's good to know! I have one that was charged off but not at a collection agency and I have just started paying it off. I will get it paid off faster if this is the case. Thanks for the info!

Re: cap1 charge off utilization question

Anonymous — Mon, 23 Jun 2014 22:17:46 GMT

No problem, might wanna research it to make sure I'm correct, I am new to all this as well, and I don't want to pass along false information.

Re: cap1 charge off utilization question

JennaD075 — Mon, 23 Jun 2014 22:27:24 GMT

I will but still thank you! I never even thought about that part of it. Even if it's true or not.

Re: cap1 charge off utilization question

Whitneyy — Mon, 23 Jun 2014 22:48:34 GMT

@JennaD075 wrote:
I didn't know charged off accounts go towards your utilization. If you have 2 cards and 1 charge off total of 3 cards that 1 charged off one is still being calculated into your utilization score?

Yes because it still carries a balance.

Re: cap1 charge off utilization question

SunriseEarth — Mon, 23 Jun 2014 23:54:59 GMT

@Whitneyy wrote:
The amount is still being factored into your utilization so yes, paying it all will help in the long run.

+1. I can tell you from experience that settling a CO with a balance due dropped my UTIL and improved my scores. Cap One also reports COs with balances due monthly, so the CO always appeared "current"; settling also stopped that.

Re: cap1 charge off utilization question

JennaD075 — Tue, 24 Jun 2014 16:21:13 GMT

That is good news on the UI. I am paying it and will continue to pay on it but figured I would get absolutely no benefit from it other than I owe it so I need to pay it! Now this info makes me want to get this one paid off before some of the other things I have paid on. Thank you for this info it is really beneficial!!!

Re: cap1 charge off utilization question

Shogun — Tue, 24 Jun 2014 16:25:50 GMT

Paying it will make it not factor into your util anymore, and at the very least, let it stop updating and properly age off.

Re: cap1 charge off utilization question

Anonymous — Tue, 24 Jun 2014 16:32:51 GMT

Ugh if thats true Shogun, that stinks lol.

The simulators is showing a huge score increase if i make small payments on it, and an ok increase if I just pay it off. So thats not right? I might just have to spam the PFD letters, not sure.

Re: cap1 charge off utilization question

Shogun — Tue, 24 Jun 2014 16:39:58 GMT

The simulator is wrong, it's a CO., it won't age as a good account. So PFD it or pay and GW it.