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What to pay first?

New Visitor

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!
6 REPLIES
Former myFICO Employee

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

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

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

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

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
Moderator Emeritus

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%.