100% Credit Utilization on secondary loan

[Anonymous]

and it seemed like all the lenders we talked to had no idea what was involved in dealing with charge offs. Some thought we didnt have to pay it back because it was a write off to the federal govt and we would just need to pay a small federal fee using the 1099 fed form. Others tell us we are still on the hook even as a charge off which seems to be true.  

[donkort]

This is the quirk about credit scoring.

One can have 10 charge-offs; another person might have 1 charge-off.  The credit score might be quite similar if their credit file is otherwise identical.

Sorry you were given bad advice. 

[donkort]

My gut feeling is that you should, if possible, pay off the charge-offs as soon as possible.

By the way, no judgment here.  I've had collections, defaults, garnishes, tax liens.

[Anonymous]

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@Anonymous wrote:

And just noticed that at the top in the myfico.com it says Revolving Utilization % 104 for all three credit bureaus

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A loan is not revolving.  Are your credit cards over the limit or do you have charged off credit cards?  Those would be revolving accounts, not the loan.

[Anonymous]

The other part of that is in my FICO Score 3B Report, it shows the Loan, for $7200 and with it Credit Utilization (100%) red circle. So just from looking at that I'd have to think thats the cause of the revolving credit utilization. and I do have 2 charged off credit cards currently. 

[Anonymous]

Credit cards are revolving credit lines, not loans.  I don't know about the loan and why it has utilization %.   When it says revolving utilization of 104%, it is probably referring to the charged off Credit cards.  Were they charged off maxed out or close to maxed out?

I would file dispute about the loan if you paid it off.

What do you mean by "sold" mortgage?

[Anonymous]

sold my house via my realtor

[donkort]

This might be a dumb question:

Are you seeking a house now----or do you have a house already?

[Anonymous]

seeking a house, prob take another 6 months, wasnt expecting the 80 point drop after the sale of the house

[donkort]

If you got all three scores from MYFICO individually, you would be able to get your mortgage scores.  I would check those out.

Experian =  FICO 2

TransUnion = FICO 4

Equifax = FICO 5

The mortgage provider would use the middle score out of those three mortgage scores, most likely.    This way, you could assess your situation before you set out to get a mortgage.

It is almost guaranteed that a Loan Officer would strongly advocate that you pay off the collection as a condition of approving the mortgage.