What EXACTLY plays into your utilization?

[sphinx313]

I am curious. Obviously, accounts in good standing with their respective limits is your available credit, but what ELSE plays in? Charge offs? Collections? ANYTHING listed in the "Accounts" section with a balance next to it? I am going to play the PFD game, but if I am unsuccessful my plan is to pay down the things playing into my utility. With my credit score sitting roughly around what is listed in my signature...I honestly think I can benefit A LOT score wise if I pay down my utility, which by the way is currently sitting at a very unhealthy 94%.

With that, I would like to know what exactly plays into it. I will not sit around and wait to be sued on the higher balance items, so I will attempt PFD's until a judgement is a risk. I consider the things over about $800 to be risky to play with, but obviously any debt can get that far as long as it's within SOL which is 6 years in my state. Also, I would like to know what you could do if you were served. Let's say CA "XXX" sues me for "$Y,YYY" and I receive a letter from a sheriff. If I go to court and settle with the CA, will it still post a judgment to my CR? Or can I settle out and avoid that if it came to it? Thanks again for all the free assistance you all provide. I consider this forum to be a resource that has no value! Wouldn't sell access to this website for anything.....except an across the board 800 FICO :X

[Jutz]

Utilization only refers to the ratio of revolving credit used versus available. Installment loans, collections accounts, etc do not count.  A closed revolving account with a balance will also count towards your balance, but not your total credit limit. In your example, your unpaid collections and/or chargeoffs are killing you, but not for being unpaid, just for being there. You need to figure out what your UTIL is, and pay it down under 10%. If I were you, I would just pay it to $0 for now so I wouldn't have revolving credit balances to worry about.  Then focus on the other bad debt. 

[madmann26]

What Jutz said.

[sphinx313]

Excellent thank you. Anyone know anything about the Judgment question?

[Anonymous]

I'm not sure about the judgement question.  I would guess that if you were served and subsequently reached a settlement with the OC BEFORE the court date, then there would be no subsequent judgement.  However if you reached a settlement it would most likely be listed as 'legally settled for less than full amount' which would also hurt your score (and pointwise it would *probably* be in the same range as a judgement).  UNLESS you were able to arrange a PFD.  However, a pfd, or even a settlement really, is a form of GW &  i would think it would be relatively difficult to get GW from a company that is already at the point of suing you.

paying down your util will help your score.  However, as long as you have baddies reporting, you'll be stuck in a lower scoring bucket.  Additionally, with your scores and 94% util, you may be at risk for balance chasing.

[sphinx313]

Could I really be the victim of balance chasing with secured cards? Obviously with unsecured cards but I don't believe so with secured cards. My plan is to have my utility at an acceptable level by the time another unsecured card comes along. I don't plan on that being very soon but who knows.

[Anonymous]

Sphinx, sorry.  I overlooked that they were secured. You should be safe with secured.