@CJ1985 wrote:
Hi All,
Im currently in the rebuilding process in hopes for applying for a Mortgage maybe a year from now.
What is better to do? Pay down utilization first or get rid of collections via PFD first? Which has bigger impact sooner? I have no lates on any of my installment or revolving accounts. I have 3 credit cards with over 80% util and 5 others with util between 0 - 2%.
Negatives: 2 State tax liens - almost $1200 total (about $600 each). i know that once these are paid i can get a release letter and provide it to the court and have these removed from my credit profile.
$1000 medical collection
$815 medical collection
$141 medical collection
$74 Progressive insurance collection.
Which route do you think I should take? Lower my util first or get rid of baddies?
Thanks for your help.
In terms of getting a mortgage. Pay/settle the collection accounts. You should anyways if their yours and you created them. A mortgage lender is going to want them paid.
As a scoring stand point, paying them will not increase your score. Unless you can get them deleted once paid.
You will not see a significant score increase until your very last baddie is gone from your reports.
The mortgage lender is going to want low utilization. Lowering your utilization NOW is not going to give you a significant score increase with delinquent & derogatory accounts present.
