Charged Off Cap One Card Reporting as Open

[Anonymous]

I'm in the process of rebuilding and noticed that my utilization looks really high because a charged off Cap One card is still reporting as open. It was sent to collections a year and a half ago and I'm finally resolving that with a pay-for-delete agreement via the collections agency - I have two months left before it is paid off. I don't understand the reporting rules on this. Should the card be reporting as open by Cap One if it's been placed with collections? Or should I dispute this/try to get the account to report as closed so it isn't also dinging me on utilization? Or should I just wait until I've paid it off via collections to see if Cap One updates it to closed? 

[RobertEG]

Being an open or closed reidt card  refers only to whether the consumer is permitted to make additional charges on the account.

it does not affect whether the debt balance continues to be included in the calculation of percent util of credit.

Almost invariably, an account that has reached the major stage of dellinquency that has resulted in its charge-off have been closed to further use by the creditor in order to prevent further increase in the delinquent debt.

If it is reporting as still open yet is not available for new charges, it should be updated to closed.

However, that wont affect scoring.

[Anonymous]

Thanks! Any ideas why myFico would be showing it in my overall credit utilization? I'm going off of what's in the myFICO tools/reports - it's showing I have a high utilization impacting my score even though my true open accounts are under 10%. 

[OmarGB9]

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@Anonymous wrote:

Thanks! Any ideas why myFico would be showing it in my overall credit utilization? I'm going off of what's in the myFICO tools/reports - it's showing I have a high utilization impacting my score even though my true open accounts are under 10%. 

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COs, independent of the account's open/closed status, continue to factor into utilization until paid off.