Collections and UTL

[jzralnc]

Does a collections TL hurt the UTL? I have a duplicate TL (one CA sold it to another CA). Both are still reporting it. It's got different balances and different account numbers, but the OC is the same on both (it's an old gas utility bill from a prior residence).

I spoke with the CA reporting the duplicate (which also carried the higher balance) and they agreed to cease reporting the account, since they no longer hold it. They also sent me a letter stating that they deleted the account with the CRA's. I am going to fax the letter to the CRA's in an attempt to expedite the deletion.

Will the erasure of the duplicate TL (an $1,100 listing) improve my UTL, and could it have any impact on scoring? To an unknowing third party, the listing looks like two separate accounts (different number, different balance).

[Anonymous]

I believe only accounts reported as revolving is factored into util

[fused]

All accounts, including derogatory TLs such as charge-offs being reported by the original creditor, factor in utilization calculations. Public records and collections being reported by a party other than the original creditor do not factor in FICO util calculations.

[Anonymous]

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fused wrote:

All accounts, including derogatory TLs such as charge-offs being reported by the original creditor, factor in utilization calculations. Public records and collections being reported by a party other than the original creditor do not factor in FICO util calculations.

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Even installment accounts? So, if all I have is deferred student loans open then my util would always be 100%?

[fused]

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sidewinder wrote:

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fused wrote:

All accounts, including derogatory TLs such as charge-offs being reported by the original creditor, factor in utilization calculations. Public records and collections being reported by a party other than the original creditor do not factor in FICO util calculations.

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Even installment accounts? So, if all I have is deferred student loans open then my util would always be 100%?

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In FICO scoring there are revolving util calculations and installment (mortgages are excluded) util calculations. Keep in mind the former carries considerably more weight. As for the 100% on your deferred SLs, I seriously doubt it's having much of an impact on your scores.

[Anonymous]

Thank you fused....I had no idea....Maybe thats why we get such high points when a OC CO drops.

[Anonymous]

Ok, so the util calculations are seperate for revolving and installment.

I understand now, had me confused for a min. Sorry.