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CO Balance vs. Credit Card Balance

Birdman7
Super Contributor

Re: CO Balance vs. Credit Card Balance

@OmarGB9 did you say that as you are bringing the balance down on a chargeoff, you saw utilization decreases and points as you crossed thresholds? Did I understand you correctly?

-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 11 of 22
Birdman7
Super Contributor

Re: CO Balance vs. Credit Card Balance

@Rebuild2022 just remember the sooner you take care of those, the sooner your scores start to recover. Also the longer you take, the more you're penalized and the longer before they begin to recover.

-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 12 of 22
OmarGB9
Community Leader
Super Contributor

Re: CO Balance vs. Credit Card Balance


@Birdman7 wrote:

@OmarGB9 did you say that as you are bringing the balance down on a chargeoff, you saw utilization decreases and points as you crossed thresholds? Did I understand you correctly?


Yes. Not every time, as there are always other factors at play, but generally speaking as my balances have gone down I'll see small gains of 1-6 pts whenever I cross one of the known utilization threholds on any of the COd accounts. And whenever I pay off a CO and it reports zero balance, I see some bigger gains of anywhere between 10-25 pts. I still have an open collection showing too, but it's with PRA, so I know once I pay/settle, it'll come off, and then I'll be collection free and have only paid charge offs showing. Looking forward to that!


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 13 of 22
Rebuild2022
Super Contributor

Re: CO Balance vs. Credit Card Balance


@Birdman7 wrote:

@Rebuild2022 just remember the sooner you take care of those, the sooner your scores start to recover. Also the longer you take, the more you're penalized and the longer before they begin to recover.


I know. It is really frustrating to figure it out. I did clear 11 COs and 7 CA account. I'll try to clear the remaining 8 COs hopefully soon.

Gardening since 08/2020
Message 14 of 22
Birdman7
Super Contributor

Re: CO Balance vs. Credit Card Balance

@OmarGB9 that is some really awesome information as I am trying to determine how chargeoff utilization factors into utilization exactly for the Primer. 

can I ask how you are determining your utilization? Are you doing this yourself? Or relying on a frontend? And are you speaking of the COs crossing individual utilization thresholds?

 

thank you for sharing.

-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 15 of 22
Birdman7
Super Contributor

Re: CO Balance vs. Credit Card Balance


@Rebuild2022 wrote:

@Birdman7 wrote:

@Rebuild2022 just remember the sooner you take care of those, the sooner your scores start to recover. Also the longer you take, the more you're penalized and the longer before they begin to recover.


I know. It is really frustrating to figure it out. I did clear 11 COs and 7 CA account. I'll try to clear the remaining 8 COs hopefully soon.


@Rebuild2022 you know I'm proud of you, you have done great and I know you will continue to.

-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 16 of 22
OmarGB9
Community Leader
Super Contributor

Re: CO Balance vs. Credit Card Balance


@Birdman7 wrote:

@OmarGB9 that is some really awesome information as I am trying to determine how chargeoff utilization factors into utilization exactly for the Primer. 

can I ask how you are determining your utilization? Are you doing this yourself? Or relying on a frontend? And are you speaking of the COs crossing individual utilization thresholds?

 

thank you for sharing.


Yes, well, I'm not entirely sure on aggregate utilization, but I'm keeping track on individual utilization with my COd accounts, and I've noticed those small bumps when crossing for example the 88.9% threshold. I need to still verify it was indeed due to that, but I'm 90% sure it was, as nothing else had changed on my file that I could see. And I'm doing it manually, yes. Not sure what you mean by a "frontend."


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 17 of 22
Birdman7
Super Contributor

Re: CO Balance vs. Credit Card Balance


@OmarGB9 wrote:

@Birdman7 wrote:

@OmarGB9 that is some really awesome information as I am trying to determine how chargeoff utilization factors into utilization exactly for the Primer. 

can I ask how you are determining your utilization? Are you doing this yourself? Or relying on a frontend? And are you speaking of the COs crossing individual utilization thresholds?

 

thank you for sharing.


Yes, well, I'm not entirely sure on aggregate utilization, but I'm keeping track on individual utilization with my COd accounts, and I've noticed those small bumps when crossing for example the 88.9% threshold. I need to still verify it was indeed due to that, but I'm 90% sure it was, as nothing else had changed on my file that I could see. And I'm doing it manually, yes. Not sure what you mean by a "frontend."


@OmarGB9 oh that's beautiful! What I mean by frontend is CMSs like MF app or website or the Experian website or CK or WH or one of the services that calculate it for you, because you cannot rely upon that it's inaccurate! 

Wow so you have saw point change as the individual utilization thresholds are crossed? How many points per threshold? Do you have any public records or just COs? Wow! This is terrific information! I'd love to know if you see any changes on aggregate utilization as well!

 

please keep me updated and I'd love any data that you'd like to share! I don't know if you've read the Scoring Primer, but it's linked at the top of my signature and I'd like to learn this to be able to add it there.

-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 18 of 22
Rebuild2022
Super Contributor

Re: CO Balance vs. Credit Card Balance


@OmarGB9 wrote:

@Birdman7 wrote:

@OmarGB9 that is some really awesome information as I am trying to determine how chargeoff utilization factors into utilization exactly for the Primer. 

can I ask how you are determining your utilization? Are you doing this yourself? Or relying on a frontend? And are you speaking of the COs crossing individual utilization thresholds?

 

thank you for sharing.


Yes, well, I'm not entirely sure on aggregate utilization, but I'm keeping track on individual utilization with my COd accounts, and I've noticed those small bumps when crossing for example the 88.9% threshold. I need to still verify it was indeed due to that, but I'm 90% sure it was, as nothing else had changed on my file that I could see. And I'm doing it manually, yes. Not sure what you mean by a "frontend."


 Hi @OmarGB9 Question for you. How does this work. If we make settlement and arragement installments how it works? Let us say CO is $10k and settlement is $2k and  10 monthly payments of $200. Now as each month passes how it gets reported ? Will it be $10k - $200 each month and once the entire $2k is paid it will get updated to $0 balance? If we make settlement and start making the payments will it stop reporting delinquency or do we have to wait for the entire CO paid off ? I am not sure how this works. I know you have setup some payment plans for some of the COs. How did that work and how its get reported ?

Gardening since 08/2020
Message 19 of 22
OmarGB9
Community Leader
Super Contributor

Re: CO Balance vs. Credit Card Balance


@Rebuild2022 wrote:

@OmarGB9 wrote:

@Birdman7 wrote:

@OmarGB9 that is some really awesome information as I am trying to determine how chargeoff utilization factors into utilization exactly for the Primer. 

can I ask how you are determining your utilization? Are you doing this yourself? Or relying on a frontend? And are you speaking of the COs crossing individual utilization thresholds?

 

thank you for sharing.


Yes, well, I'm not entirely sure on aggregate utilization, but I'm keeping track on individual utilization with my COd accounts, and I've noticed those small bumps when crossing for example the 88.9% threshold. I need to still verify it was indeed due to that, but I'm 90% sure it was, as nothing else had changed on my file that I could see. And I'm doing it manually, yes. Not sure what you mean by a "frontend."


 Hi @OmarGB9 Question for you. How does this work. If we make settlement and arragement installments how it works? Let us say CO is $10k and settlement is $2k and  10 monthly payments of $200. Now as each month passes how it gets reported ? Will it be $10k - $200 each month and once the entire $2k is paid it will get updated to $0 balance? If we make settlement and start making the payments will it stop reporting delinquency or do we have to wait for the entire CO paid off ? I am not sure how this works. I know you have setup some payment plans for some of the COs. How did that work and how its get reported ?


Depends on the CA. I've had it happen both ways. Some will deduct the monthly settlement payment amount from the full balance and then update to zero once payment plan is complete, while others will leave the full balance as is until the payment plan is complete and then just do one final update to closed/paid/settled for less.

 

As for your second question, at least with all of my creditors/CAs, they keep reporting delinquency/late until it is paid off or settled.


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 20 of 22
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