Re: cc utilization question and ATT $58 dollar col... - myFICO® Forums

Anonymous · ‎02-22-2009

My husband and I use one credit card and pay it off every month. That is a 7000 CL. Right now , the balance is 2400.00

again we pay it off each month

we have 10 other CC's with limits combined 50k

When i bought my fico experian free 30 day score, its 657!!! i have two car loans and thats it.

How come its focusing on a CC that we pay off every month as VERY BAD debt to limit amounts!!?????

Also ATT has sent to collection agency a $58 dollar bill that I dont owe, have no idea where it came from

two quesitons

1. should i pay the $58.00 to get if off? Pay to who ATT or Collection agency?

2. Should I not use my visa and pay it off each month? not use credit cards at all?

please help

Red1Blue · ‎02-22-2009

You should ask the CA to remove the collection account in case if you pay for it. It is calle PFD / Paid for Delete. If you think it is a mistake, send them a DV letter ( Debt Validation ) asking them to prove it is your account. Also make sure it passed SOL ( Statue of Limitations ).

If not handled properly by paying for the CA account you can have more damage done to your credit than what it is now. Read more posts on CA / DV / PFD on this forum and you can gain more insight into this. Good Luck.

marty56 · ‎02-22-2009

If I understand your question, your CR is saying high CC util even though you PIF by the due date. FICO and your CR doesnt show DTI.

It matters when you pay the CC off. For example if you have a 3000 CL on your CC and you charge $2000, if the CCC reports to the CRAs the statment balance, your CR will show $67 % util on the card even though you PIF before the due date.

In order to get the best result, you would try to pay all but $270 on the CC balnce nefore the statement drop date so the 9% util repors, and then P:IF the rest by the due date,

1/25/2021: FICO 850 EQ 848 TU 847 EX

Anonymous · ‎02-22-2009

How old are your auto loans? What do you owe on them compared to the original loan amount? I was surprised to see that these loans are calculated into utilization....for some reason I thought only CC debt mattered...not so!!!

Anonymous · ‎02-23-2009

Auto loans are NOT considered in your utilization calculation. Only credit cards.

Anonymous · ‎02-24-2009

@Anonymous wrote:
Auto loans are NOT considered in your utilization calculation. Only credit cards.

According to Equifax that's not so. The statement below was taken from there site. And on my report they show 1st- credit card utilization then 2nd- total debt utilization.

"Lenders usually take a positive view of individuals with a range of credit accounts - car loan, credit cards, mortgage, etc. -- that have a record of timely payments. However, a high debt to credit ratio on certain types of revolving (credit card) accounts and installment loans will typically have a negative impact."