Charge-Offs and Utilization - Need Clarity - myFICO® Forums

MarcuzAgrippa · ‎11-09-2021

Hi Everyone! Looking around and doing some research I have consistently seen comments surrounding charge-offs and them contributing to a person's overall utilization. However, the common thing I have seen is these charge-offs are for credit cards.

Currently, I have a charge-off for a prior auto loan. Since the auto loan would be an installment account and not a revolving account, how would this impact utilization? Or does it not impact it at all when the charge-off is for an installment account?

Current Cards (In order of acquisition):

Authorized User: Cap1 $4250 w/ 3+ years AAoA, AMEX $1k w/ less than a year AAoA
Current Auto Loan:

Anonymous · ‎11-09-2021

I may be wrong and someone please correct me if I am. It's my understanding that installment loans, like mortgage or auto loans, do not factor into credit utilization.

SouthJamaica · ‎11-09-2021

@MarcuzAgrippa wrote:
Hi Everyone! Looking around and doing some research I have consistently seen comments surrounding charge-offs and them contributing to a person's overall utilization. However, the common thing I have seen is these charge-offs are for credit cards.

Currently, I have a charge-off for a prior auto loan. Since the auto loan would be an installment account and not a revolving account, how would this impact utilization? Or does it not impact it at all when the charge-off is for an installment account?

There are 2 kinds of aggregate utilization: revolving and installment.

It does not affect your revolving utilization.

Installment utilization relates only to open loans, so it would not impact that. But of course the chargeoff itself has tons of impact.