Finally!! I am a long time lurker (from the 400s to now mid 600s) of the forum and first time poster but I have a question I couldnt find an answer for! With all the help I have received passively just spending hours reading and rereading here at MyFico..I figured I would give it a shot and see if any of you credit gurus could give me an answer.
I paid an old CO from 2015 for $942 from BofA. I waited a month for an update and it didnt happen so I disputed with all 3 CRAs and finally my EX sent me a alert saying it was resolved.
The comments were changed to "Paid, Closed. $942 written off" and under balance it is blank.
This account being paid is huge for me as it was affecting my utl hardcore. I have 2 rebuilding cards and I believe my utl was 64% and when its paid and updated Ill be down to 2% and I am expecting a few points from the change.
My question is...is there any particular way that it should have been updated to reflect the change in utl? I was expecting an updated balance amount to show $0 (not a blank space) and the remarks to be "paid in full". I didnt see a change in the score yet and thats what prompted me to come here for help or advice. More so just curious if it even matters???
Thanks in advance to anyone who takes the time!!
A creditor has the option, after taking a charge-off, to report the current status and prior monthly delinquency status months as either CO or as the level of monthly delinquency, such as 180+ late. Either are acceptable status and payment history profile prior status delinquency codes after taking of a charge-off.
However, once you pay the delinquent debt, the current status must therafter show paid or paid/settled for less, as the case may be, and the current balance must be updated to show $0. Prior monthly payment history profile status of CO is not removed, nor is the statement of the amount that was charged to profit and loss. The statement that $942 was written off thus appears to be proper, as does the current reporting that the debt is paid.
Is the current balance showing $0, and thus continuing to affect your % util, or did they update the current balance to show $0.
From what is posted, I do not see a clear reporting inaccuracy.
It looks like he's saying that under "current balance", it just has a blank space, not showing 0, but just nothing is entered in that spot. I don't know if that affects util or not. He looks to be hoping that they will enter "0" in there for current balance, and that them doing so will cause his uitl to drop.
Thank you both for replying!
@bass_playr - Your exactly right as that is what I was asking. And I got my answer when I woke up this morning and I checked Experian. My logic was that it would have to show $0 balance versus just being blank in order for my total revolving credit to be accurate. Like I explained it was marked paid though so in my case overthinking as I lack patience and just needed to wait a few hours for the score to update.
My EX Fico jumped 46 points from 576 to 622. A pleasant surprise for sure.
Thanks again guys
It is not possible to tell from a blank entry whether it is a simply omission by the vendor who formatted and provided the commercial credit report, or whether the creditor failed to make any reporting.
I would suspect that it is the former, as the CRA will usually insert ND for a required field.
I would first order a more complete, non-commercial report from annualcreditreport.com and see what the CRA shows from your actual file.