topic Re: Utilization question in Rebuilding Your Credit

Utilization question

Unique620 — Sun, 12 Feb 2017 03:07:40 GMT

I was wondering if charge off accounts are included in your utilization. I have only one cc reporting at $4.00 and it is saying I am using 7% utilization. And it says its $418. I have two charge offs but believe the Capital One account is still being included in my utilization.

Active accounts

Capital One platimum

balance reported $4.00

credit limit $3,750

MCU

balance reported $0

credit limit $1,000

Capital One $414

Date of 1st Delinquency 7/2015

Charged off 3/8/2014

First National $418

Date of 1st Delinquency 10/2013

Charged off 3/4/2014

Re: Utilization question

rmduhon — Sun, 12 Feb 2017 07:40:32 GMT

Yes, they are counted in your UTI. The charged off Cap1 card, you have the dates wrong. The DoFD can't be after the charge off.

Re: Utilization question

Unique620 — Sun, 12 Feb 2017 23:55:43 GMT

@rmduhon wrote:
Yes, they are counted in your UTI. The charged off Cap1 card, you have the dates wrong. The DoFD can't be after the charge off.

Thanks for reply.

For some reason that is how it is on my credit report! I thought it doesn't look right and have disputed it. They say its because I have made payments on the account after it was charged off. Which still doesn't make since.

My other question is why only is the captial one account being included in utilization and not the first national charge off?

Re: Utilization question

800goal800 — Sat, 17 Jun 2017 22:21:08 GMT

Are charged offs included in utilization ? I don't think mine are at all. I have open debt of approx 2,220 and credit line of 32,100. Each bureau is showing 7% utliization. However I must have 30k in charge off. Where would that be calculated ?

Re: Utilization question

Anonymous — Sat, 17 Jun 2017 22:48:55 GMT

Mine is included in my utilization for two credit bureas but not the third. You have to check your credit report. I recommend using CCT to see if your CO is included in your utilization.

Re: Utilization question

800goal800 — Sat, 17 Jun 2017 23:04:06 GMT

Mine is not included in any of the 3 on CCT.

Re: Utilization question

RobertEG — Sat, 17 Jun 2017 23:21:16 GMT

Reporting a charge-off has no bearing on continued obligation for the entire debt, and does not effect continued inclusion of a debt balance in your % util scoring.

The same is true of closing of a credit card, which only prevents further use, and does not remove it from continued scoring under % util.

However, a creditor will often choose to sell a bad debt after taking a charge-off, thus recouping a (small) bit more or the expected total loss.

Once a creditor sells a debt, they are required to promptly update the debt balance to $0. That removes the account from % util scoring.

If a debt collector then reports a collection, the balance reported is NOT included in your % util scoring. Only creditor accounts, and not collections, are included under % util.

Thus, it is common for some charged-off credit card accounts to continue to be included in % util scoring, while others are removed.

Re: Utilization question

medicgrrl — Sun, 18 Jun 2017 02:39:51 GMT

I don't think they can change the DOFD after they place it in a CO status.

Re: Utilization question

800goal800 — Sun, 18 Jun 2017 14:06:48 GMT

What, if any, are key threshold levels where a bump in score may be seen ? I have one card at 97%, but wondering is there would be any movement at 80%, 60%, etc before getting under 10%.

Re: Utilization question

Anonymous — Sun, 18 Jun 2017 14:28:15 GMT

From what I've read here, I believe the thresholds are 9%, 29%, 39%, 49%, 59%, 69%, 79%, & 89%. It's important to get it under the _9% because the scoring algorithm rounds up. So even at, say, 39.01% util, you will be grouped in the 40%+ threshold, which will impact your score. At least, this is the consensus here.

Re: Utilization question

Anonymous — Wed, 21 Jun 2017 11:54:27 GMT

So good to know. With my new cards I'll be coming down from 65% UTI to 40%UTI. Looks like I'll go down two thresholds? I'll let everyone know if I get any score increase from lowering my UTI.

Re: Utilization question

medicgrrl — Wed, 21 Jun 2017 11:56:37 GMT

I believe thresholds are even numbers...89, 69, 49, 29, 9. You should cross 1 threshold.

Re: Utilization question

Sandman771 — Wed, 21 Jun 2017 12:27:04 GMT

@medicgrrl wrote:
I believe thresholds are even numbers...89, 69, 49, 29, 9. You should cross 1 threshold.

I believe those are odd numbers. lol

Happy Hump Day!!

Re: Utilization question

medicgrrl — Wed, 21 Jun 2017 12:38:56 GMT

😛 I meant the first number is even...