CO's and UTI

[Sandman771]

I am still on the entrance ramp to the good credit highway so  have plenty of questions, luckily you folks are kind enough to help out. My question is this. Of my bad markes four are CO CC accounts. Two negligible and two fairly good size. The two big ones are with Cap one (back when they believed in CLI's lol). Anyway, my current UTI is showing over 100%. But this credit isn't available, but I do understand that it is still showing up. 
I recently got two new cards with a $2300 in CL. This wil obviously help my UTI and should get it below 100%. Especially when I pay the two smaller ones. I'm attempting to PFD one of the larger ones as well with a CA. Is my logic sound or is at flawed as my current FICO? Thanks in advance. 

[Anonymous]

How many credit cards do you have now?  (Open cards in good standing, counting the two new cards.)  What is your utilization on your "real" cards, ignoring the charge-offs and collections and so forth?

Do you have any open installment accounts?

Would any of the COs or collections fall of your reports in the next few years due to the 7-year clock?

And finally do you have some crucial need for credit that might be coming up in the next couple years -- like buying a house?  If so, what is it and when do you guess it might be?  (Or by way of contrast, are you just interested in gradually improving your scores over time -- but not with some urgent need coming up?)

If we know the answers to those questions, we can help you better.

[Sandman771]

I have two cards now. $300 and $2000 with less than 10% UTI. 

I have an open auto with some hiccups but perfect paid the past 4 months working on GW on that one seperately. 

The COs are all from 2014, once of which was Continental Finance that I have been working on removing as they were under a cease and desist order already. 

I have no urgent need for credit I'm more interested in improving my scores over time but I just joined NFCU and I would like to get a little CLI and possibly a second card with them. 

[Anonymous]

Your plan sounds great then.  If I were you, I would keep my utilization on my true cards really low (like 1%) since that will help keep your computed utilization (into which it sounds like FICO may be including your CO balances) a bit lower.  If you want some practical strategies for how to keep your balances really low any number of people can suggest some.

Because your situation is unusual, you'll just have to monitor your scores and see how much your strategy is helping.  Regardless, however, it is the right strategy.  Get your COs and collections PFD'd, keep your open cards with extremely low util, etc.

When it looks like your scores are getting high enough to get a third card, be sure that you pay one of your two cards to $0 and keep it there about 40 days before you apply.  Until then I think using them monthly and then PIF-ing makes sense.  Since you may get your third card with NFCU, you may be able to sit down with a rep to find out if you can get an off-the-record assessment/pre-approval so you don't burn an inquiry and get rejected.

Getting a third card makes a lot of sense though when the time is right.

Best of luck!

[Sandman771]

Thank you. I know many on here value HP's much like 1923 St. Gauden's, but I only have two on my bureau. Well three counting my car-buying 18 months ago, so those don't concern me as much as many. 

But with that said i agree to attempt the pre-approval and yes my third card was going to be with NFCU. So I think that will be best. I'm in no hurry really. I almost joined Lexington law, but i figured this place and time would be better and cheap.