topic Re: CC Charged Off - Reporting at 100% utilization in Rebuilding Your Credit

CC Charged Off - Reporting at 100% utilization

Anonymous — Sun, 23 Apr 2017 03:56:41 GMT

Hi everyone,

I've got a question and not sure what I should do. I have 3 baddies (closed, charged off) with the same Credit Union. Two of the baddies are from loans and the Third baddie is from a revolving line of credit (updating monthly).

Now here's the problem: All 3 of these baddies are still being reported by the OC, even though a few months ago I received 3 letters from a Collection Agency stating they were trying to collect the debt for this OC (The OC is still the only one reporting).

The revolving account in question is worth $420. And because it is is a closed C/O it is reporting at 100% utilization. My total utilization across all accounts is 5% right now.

Should I pay off this $420 baddie, and if I do will it possibly increase my score? And as much as i would like to, I'm afraid that if I pay off this baddie, I might wake a 'sleeping gian't in my OC and potentially cause the other 2 accounts to start reporting as collections (they are both $3000+ and payment isn't feasible at this time).

Thanks for any help

Re: CC Charged Off - Reporting at 100% utilization

Anonymous — Sun, 23 Apr 2017 04:16:13 GMT

To add: I have $32k in available credit (5% utilization) and all 3 of those baddies are 3+ years old

Re: CC Charged Off - Reporting at 100% utilization

Anonymous — Sun, 23 Apr 2017 07:03:43 GMT

@Anonymous wrote:
Hi everyone,

I've got a question and not sure what I should do. I have 3 baddies (closed, charged off) with the same Credit Union. Two of the baddies are from loans and the Third baddie is from a revolving line of credit (updating monthly).

Now here's the problem: All 3 of these baddies are still being reported by the OC, even though a few months ago I received 3 letters from a Collection Agency stating they were trying to collect the debt for this OC (The OC is still the only one reporting).

The revolving account in question is worth $420. And because it is is a closed C/O it is reporting at 100% utilization. My total utilization across all accounts is 5% right now.

Should I pay off this $420 baddie, and if I do will it possibly increase my score? And as much as i would like to, I'm afraid that if I pay off this baddie, I might wake a 'sleeping gian't in my OC and potentially cause the other 2 accounts to start reporting as collections (they are both $3000+ and payment isn't feasible at this time).

Thanks for any help

Collection agencies could start reporting on any of them at anytime. If the debts are yours and you created them, then you owe the money and should pay them.

Of course you should payoff the $420 chargeoff, it will then report a zero balance thus no longer at 100% utilization. And it should stop updating every month.

The OC won't be the only one reporting for long. Just a matter of time that the CA's start reporting. Which could make your current creditors take a close look if they AR you and see fresh collections and scores dropping even more.

Re: CC Charged Off - Reporting at 100% utilization

CreditInspired — Sun, 23 Apr 2017 07:29:46 GMT

My brother always had a saying, "pay now or pay later." IMO, I would set up some type of payback arrangement with the CA immediately. Because the minute the CAs start reporting, like donny10 says, everything will start tanking and not only will other creditors become aware through an AR and possibly take AA, your credit profile will be affected for 7 years. Yikes! It's not worth it. Instead of looking at is as waking a sleeping giant, look at it as an opportunity to get ahead of the catastrophe before it happens, because it's a coming. Honestly, a lot of people only wish they had tackled this same scenario before the CA reported it. Since you have $32K in available credit, does any or them have 0% BT attached. If yes, now is a great opportunity to take advantage if that. What are your scores like? Again, setting up some type of payment now will save you years of headaches. Good luck.

Re: CC Charged Off - Reporting at 100% utilization

MyLoFICO — Sun, 23 Apr 2017 08:10:27 GMT

I would not pay the collection agency. Call the original creditor and ask for a pay for delete. If they will not talk to you, then go to the CA and agree to pay in full only if they will delete it. I don't know if they can do that if the original creditor is the one reporting it though. Put them on one of your cards and get rid of the bad debt, then pay it off. 3 years old. The next 4 will go really slow. And that could change depending on the date of first delinquency. I agree, its your debt, own it.

Re: CC Charged Off - Reporting at 100% utilization

sjt — Sun, 23 Apr 2017 14:30:36 GMT

If you were contacted by a collection agency it doesn't mean they own the debt, they are probably collecting on behalf of the credit union.

if it were me, I would pay it. Once paid your score would go up and it would stop the monthly reporting.

Re: CC Charged Off - Reporting at 100% utilization

UncleB — Tue, 25 Apr 2017 10:41:17 GMT

Moved to 'Rebuilding Your Credit' for more exposure...