Reply
New Visitor
Posts: 1
Registered: ‎03-06-2007
0

What to pay first?

I am cleaning up my credit report and my act :-) - I have paid down all my credit cards, but what about accounts with utilities (I have 2) that show negative - they total about $500 - I also have a report from a cell phone company? I also have one deparment store credit card in collection - $400 - I just wonder if someone can advise what to pay first to get my credit score back in good standing - Thanks!
Former myFICO Employee
Posts: 70
Registered: ‎03-05-2007
0

pay recent things first

I had a similar question about my credit report and what to pay off first.  What I was told is that you should first pay off the most recent stuff first.  I was late 30 days on one of my cards and was told I should pay that off first so it didn't get to 60 days late.  After I got current on all my payments, I then paid off debt that had the highest interest rates.  Unfortunately the collection is a done deal - once something goes into collections, even if you pay it off, it will always show up on your credit report as a negative item, although I think it falls off after about 7 years.  I hope this helps.
New Member
Posts: 1
Registered: ‎06-18-2007
0

Re: What to pay first?

I have 3 cards.Is it better to pay off  2 cards and leave one with a higher balance, or pay off 1 card and pay down the other 2 cards to a low balances?
Super Contributor
Posts: 8,195
Registered: ‎03-25-2007
0

Re: What to pay first?

They check the total % util and the util on each line as well.
 
So all of them, with most to the highest APR?
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: What to pay first?



renie wrote:
I am cleaning up my credit report and my act :-) - I have paid down all my credit cards, but what about accounts with utilities (I have 2) that show negative - they total about $500 - I also have a report from a cell phone company? I also have one deparment store credit card in collection - $400 - I just wonder if someone can advise what to pay first to get my credit score back in good standing - Thanks!



Doesn't matter.. but you should get a PFD before sending any money.
 
PS... your scores should have already improved from paying down your cards. Smiley Happy
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: pay recent things first



JC15 wrote:
I had a similar question about my credit report and what to pay off first.  What I was told is that you should first pay off the most recent stuff first.  I was late 30 days on one of my cards and was told I should pay that off first so it didn't get to 60 days late.  After I got current on all my payments, I then paid off debt that had the highest interest rates.  Unfortunately the collection is a done deal - once something goes into collections, even if you pay it off, it will always show up on your credit report as a negative item, although I think it falls off after about 7 years.  I hope this helps.


This is why PFD is so powerful. Smiley Happy
Highlighted
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: What to pay first?



vulcangof wrote:
I have 3 cards.Is it better to pay off  2 cards and leave one with a higher balance, or pay off 1 card and pay down the other 2 cards to a low balances?


Pay down whatever card that has the highest util. Ideal util is 1-9%.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.