The reason I ask is that I have a collection showing as an "open" account. No idea why; it's a utility bill from ages ago and I've moved since. But I was trying to figure out the math, and I suspect that perhaps it's being counted as a maxed out account. So weird. Can anybody shed some light? Is it possible for a collection to be included in the calculation?
FICO looks at two different utilizations: revolving and installment. Installment util is virtually ignored. Thankfully too otherwise you'd get dinged for a maxed out account if you add a car or mortgage.
Revolving util is bigger. Revolving util includes most CCs (special rules for some NPSL CCs, certain charge cards, and specific creditors like Macys). Revolving util also includes LOCs and HELOCs up to a certain limit. Revolving util also includes closed CCs with a balance provided a balance and CL report.
I have seen a couple of examples of a CA reporting in such a manner where the balance and high balance were factored in. Does your math support that? And are you looking at a FICO report to compare that math (some CMSs really do a botch job in calculating util).
Collections are reporting of their debt collection authority to the CRAs. They are not "accounts" of yours.
If the unpaid debt is reporting on the OC account, that is where it will score in % util.
Status of a collection as "open" is accurate. All collections are open until such time as the debt is eithr paid or their collection authority is terminated.
The "date open" of a collection is not an open account of yours.