Where to put money: Pay off collection or drive down utilization?

[fixingitohio]

I'm working on next months budget for the rebuild project.

I have two open collections for $160 and $632 respectively.  They both have a little under 2 years remaining until they die their natural CRA reporting death.

I can pay them off both next month OR I can drive my utilization to 1% next month, but I can't do both next month.

What's my better strategy?

Goal:

I've been in the garden since April.  My goal is to shoot for an Amex charge in the November/Dec/Jan timeframe for business travel.  Had them years ago, didn't burn them, apped in April and declined.  I knew I would be but at least I knew what the reasons were and could work on those in the garden.

When I pay these off I would have 

- Cap One paid charge off from 2008

- Credit One charge off from 2008 reporting $0 and sold to ...

- Asset Acceptance collection from 2008 (same account)

- Paid education charge off from 2007

- Paid insurance premium collection from 2008

Today's EQ FICO is 665 and trending upward.

Would closing these collections out ASAP (even if they won't PFD) THEN driving utilization down the following month make for better odds?  What does Amex UW look for with regard to open/closed chargeoffs/collections?  Anecdotally, it seems like a 640 ish FICO is a bare minimum and I'm waiting for a couple updates before I pay for my EX FICO here.  They pulled EX for me last time.

Thanks

[madmann26]

What is your current util at now?

[fixingitohio]

57%

I can do them both in two months.  Just trying to decide which goes first.

Since util has no memory month to month over the long term, is it better to add an extra month of age to closed collections?

[madmann26]

The util is hurting more right now.

Do that first, then get the CA's.

[TheConductor]

Yes, util first.

Getting the util down is going to give you a better-looking report for any discussions you want to have with the creditors for those chargeoffs.