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Charged off card - Counting for Utilization?

New Visitor

Charged off card - Counting for Utilization?

I have a charged off credit card from 3 years ago.  Its still reporting on all 3 bureaus as charged off, yet its counting against my utilization.  Its showing as if its 139% and counting as current.


Is that accurate?  

Message 1 of 4
Valued Contributor

Re: Charged off card - Counting for Utilization?

Yes, so long as the original creditor still owns the debt, they can report the outstanding balance and update with a new delinquency monthly. Your credit limit on a closed, charged off account is $0 - that's why the util is over 100%.

If you pay / settle the debt, they will update the account to reflect a $0 balance, which will reduce your util, and cease future delinquency updates but the account, tho paid, will still remain in a chargeoff status. Paying it will allow the derogatory to age and your scores will begin to rebound.

If the creditor sells the debt to a collection agency, they must update the account to reflect a $0 balance, notate the account as sold and will no longer report future months as delinquent - tho the account will still reflect a chargeoff status. You'll also likely end up with an additional negative tradeline for the collection agency which will update delinquencies on a monthly basis.
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Message 2 of 4
Super Contributor

Re: Charged off card - Counting for Utilization?

To clarify OP, it sounds like the account is reflecting a credit limit, not zero CL, and the balance was near that CL, but with fees now exceeds the displayed CL?
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 3 of 4
New Visitor

Re: Charged off card - Counting for Utilization?

So sorry for the insanely long reply.  But yes exactly.  The amount still shows, but with fees has climbed over the top.

Message 4 of 4
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