cap1 charge off utilization question

[rubberman2003]

I have a cap1 charge off that is about a year old.  The limit is only 400 dollars, the amount due is 247.  Which is 61.75% uti.  If they dont do PFD, which it doesnt sound like they will.  Will paying this off increase my score?  I know paying off a charged off account can lower my score, but in this case with the uti being high, could it help me?

[Whitneyy]

The amount is still being factored into your utilization so yes, paying it all will help in the long run.

[JennaD075]

I didn't know charged off accounts go towards your utilization. If you have 2 cards and 1 charge off total of 3 cards that 1 charged off one is still being calculated into your utilization score?

[rubberman2003]

Well right now I have 1 active credit card.  The old capitol one does not show up as part of my credit limit.  The way I understand it, since cap1 is the one reporting and not a CA it can still factor into Utilization somehow.

The score simulator shows a decent gain from paying it off.

[JennaD075]

Oh that's good to know! I have one that was charged off but not at a collection agency and I have just started paying it off.  I will get it paid off faster if this is the case. Thanks for the info!

[rubberman2003]

No problem, might wanna research it to make sure I'm correct, I am new to all this as well, and I don't want to pass along false information.

[JennaD075]

I will but still thank you! I never even thought about that part of it. Even if it's true or not.

[Whitneyy]

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@JennaD075 wrote:

I didn't know charged off accounts go towards your utilization. If you have 2 cards and 1 charge off total of 3 cards that 1 charged off one is still being calculated into your utilization score?

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Yes because it still carries a balance. 

[SunriseEarth]

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@Whitneyy wrote:

The amount is still being factored into your utilization so yes, paying it all will help in the long run.

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+1.  I can tell you from experience that settling a CO with a balance due dropped my UTIL and improved my scores.  Cap One also reports COs with balances due monthly, so the CO always appeared "current"; settling also stopped that.  

[JennaD075]

That is good news on the UI. I am paying it and will continue to pay on it but figured I would get absolutely no benefit from it other than I owe it so I need to pay it! Now this info makes me want to get this one paid off before some of the other things I have paid on.  Thank you for this info it is really beneficial!!!