I have a revolving account that was charged off in 2016 that seems to be seriously harming my utilization, it is showing up around 75% because I still owe on a card that was charged off. Is this an error? I have already gone through and disputed a few cards that showed a balence that were SOLD OFF to another creditor (I paid these collections accounts), but the last one was never sold off, it is from Discover. They tried to sue me, I asked for abritration, and they have not pursued anything since then. They are unfortunately still reporting not only a balence but this is showing up on my revolving utilization rate which is absolutely nuking my ratio here. Do I just have to wait 7 years for this to go down or pay it off?
As you stated, Discover never sold the the debt. Your FICO will take a beating ever single month until you address the situation or just wait the 7 years.
Closing a revolving account terminates the consumer's ability to make new charges, thus adding to the balance.
It does not end the ability of the creditor to continue to report delinquency, and does not remove the debt balance from continued scoring under % util.
Taking of a charge-off is an internal accounting measure that becomes a reportable delinquency status until the debt is paid or sold.
It also does not prevent the continued reporting of delinquency, and does not remove the debt from continued scoring under % util.