Pay or Wait

[worklovedance]

It looks like my life will improve by summer 2016.  But since that seems like a long time,  I'm wondering if there would be a significant boost to my score if I pay the COs listed below.  Or does it make more sense to just let them fall off?  

Capital One  - $2,600 CO - Falls off June 2016

Macy's - $625  CO - falls off March 2016

Midland - $1,050 (HSBC - CO) - Falls off March 2016

My other baddies include a paid BMW Financial and a now current Sallie Mae, both with lots of late pays.  I also have one paid medical collection that I'm hoping will be removed soon.

Last month I opened a $500 secured loan with my CU.  But I really need to add at least one CC TL to help with my rebuild.   I'm worried about being denied, even for a secured since a majority of my negative info is CC based.   Any suggestions appreciated.  Thanks!

[gdale6]

A paid co is no better than an unpaid one in the eyes of FICO. You would want PFDs for those and I would not try unless they are past your states SOL. For a secured card without a HP try SDFCU. I would try GW letters to the CAs that show as paid & to the ones who are carrying your instalment loans.

[guiness56]

As for the CO, paying it won't change the fact that it is a CO.

However, if the CL are also reporting, those are included in your revolving utilization and you could see a bump by paying them off.

When was the last time they updated with the CRAs?

[worklovedance]

All CO's last reported in  February 2014

[guiness56]

Since they recently reported it would not hurt your score.

Do you know what your overall utilization is?

[worklovedance]

No clue.  I'm so new I don't even know where to get this number.  Let me research. 

[HigherFico]

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@guiness56 wrote:

Since they recently reported it would not hurt your score.

Do you know what your overall utilization is?

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Where can you find your utilization? I looked on credit karma and it only counted my two credit cards when giving me my utilization. It seemed like it used my two cc's which is $1400 all together... My current utilization is 39% I was wondering if my collections are facctored into my utilization also...

[guiness56]

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@worklovedance wrote:

No clue.  I'm so new I don't even know where to get this number.  Let me research. 

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For your revolving utilization, it will be all balances on your CC, open or closed (and still reporting a CL and balance) divided by the total CL x 100.

[guiness56]

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@HigherFico wrote:

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@guiness56 wrote:

Since they recently reported it would not hurt your score.

Do you know what your overall utilization is?

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Where can you find your utilization? I looked on credit karma and it only counted my two credit cards when giving me my utilization. It seemed like it used my two cc's which is $1400 all together... My current utilization is 39% I was wondering if my collections are facctored into my utilization also...

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Not sure on the CRs if it even shows it.

Collections should not be included in your revolving.  Not to say they aren't at times.

Add all of your revolving balances and divide by the total CLs x 100.  This will include any revolving, open or closed, that reports a balance and CL.

[HigherFico]

Oh ok that's what I thought. My collection is not included.