Correct me if I'm wrong, but I thought I read a thread stating that collections and chargeoffs are calculated in utilization. If this is true, how can paying in full help utilization and hurt credit score if updated?
In FICO scoring, collections reported by collection agencies or other third-party collectors NEVER factor in util calculations. Charge-offs, however, can and usually do factor in util calculations...this unfortuantely can really tank your scores.
Unlike collections, paying-off or paying down a CO might raise your FICO scores. Some have reported improvement in scores while others haven't. And yes, any improvement in scores would be directly related to lowering util.