Need Help With Tactics

[Anonymous]

I've received a small, unexpected windfall and want to use the money to pay off some credit card debt. I have about $3,000 and I have three options, but I'm not sure which would have the biggest impact on my credit right now.  

I have two closed credit card accounts (one with Chase, one with Bank of America) that I have been dutifully paying off. For the past year and a half or so, I have not made any late payments.  They're both currently around $2,500.  I am not sure what you would call these: the CCCs closed the accounts, but they haven't been turned over to a third party collection agency, and I pay Chase and BoA directly.  

I have one active card with Citi, a $5,600 CL that is nearly maxed out, but is current and hasn't been late in over a year. 

Should I pay down the active card so my utilization goes down?  Should I pay off one of the closed accounts so they show Paid in Full?  Any guidance would be much appreciated.

[Anonymous]

How are the closed accounts reporting?

Closed - No lates

or

Closed - Balance Due

I know paying off your active card will give you a boost, but I'm not sure what paying off your closed cards will do. I think it all depends on how they are being treated. Difficult question.

IMO I would pay down the active card and hide it in a drawer or book so I don't use it anymore. Having maxed out cards kills your score.

[RobertEG]

Creditors may, if a card remains maxed over a period of time, reduce the credit limit as the debt is payed down.

That will cause the % util to remain high even though you are reducing the balance.

I would pay the maxed card first in order to prevent a possible credit limit decrease.