What to do with extra money!!

[Anonymous]

I will be receiving a small amount of extra money in a few weeks & I'm in desperate need of some advice on what to do with it.

My primary goal is to increase my credit score.  Right now, it's a 620 (according to Discover FICO score).

I have 2 collections ($1000 each, from 2014) & one medical judgement for $400 (from 2012).

My credit card utilization is at 44%.  If I paid it down, it would be at 28%.

Please let me know if you need any other information.  I would like my score to go up, but not sure what direction to take.

Thank you so much for your help!!

[JustinA]

Judgment. PFD on collections. Deal with utilization later.

Just my opinion

[Anonymous]

I agree with Justin. Also I would only charge things I could pay in full on the cards whenever possible.

[Anonymous]

Thank you for your response.

They won't do a PFD so it would just show as paid in full.

I also spoke with a financial advisor who said I should try to settle the debt for less.  I wasn't sure I wanted to do that because I don't want it to look the same as having the collection in full.

[Anonymous]

Thanks for commenting!!

Usually I do (half of my cards have a 0 balance).  It would take about 3 months to get under 30% if I paid off the collections now.  I just was worried about having the CCARD balances that long.

[Gatito]

How do you know they wont do PFD, phone call? Try mailing them a letter. Sometimes you can find someone who will do it when others just brush everyone off or take payments. You may be able to find someone that can/will help.

[JustinA]

Fire your financial advisor

[Anonymous]

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@JustinA wrote:
Fire your financial advisor

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From a strictly financial point of view - the advisor is correct. A financial advisor is going to look at things from a debt/income perspective. If he can reduce the cost of debt by setlling for less, he is not going to care how it "looks" to someone reviewing his reports - he simply sees that savings as money that can be invested elsewhere to produce long term income.

[JustinA]

Ok. Rehire him but part time no benefits; )

[Anonymous]

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@Gatito wrote:

How do you know they wont do PFD, phone call? Try mailing them a letter. Sometimes you can find someone who will do it when others just brush everyone off or take payments. You may be able to find someone that can/will help.

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I tried to do a PFD in the past.  I mailed letters to the collection agency and all types of vice presidents, presidents, and managers at their corporate office.  I did not receive a response from anyone.

It's with PRA.  I've searched this site & have yet to find someone who has had success with them.