Two ways to go about it:
1) Pay off smallest balance and keep it $0 (Snowball)
2) Pay off highest APR regardless of balance size (Avalanche)
If you need signs of tangible progress go #1, if you don't go #2 as it'll be less interest paid.
Focus on getting your revolving debt down, it's not much compared to your income but optimal is something like $20 on one tradeline honestly (technically below 9% but w/e yuppie food stamp is an easy target to shoot for imo instead of maths) and the rest zero. You'll see that referred to here as AZEO, but you have a bunch of cards nearly maxxed out and that's not helping your scores at all.
Ignore the installment loans, just make your regular payments on them. Prepaying them is a rounding error especially on the mortgage scores compared to revolving debt which is a score killer.
Also no more new accounts till you sort your mortgage, those hurt on the mortgage side.
Your DTI is pretty high and although your income is high, all those smaller balances add up fast. The auto loan that's almost half your income is pretty significant, I'd look into getting rid of that, taking up a lot of income with that payment every month, with a smaller auto payment you could use the rest of the funds from that to tackle all the smaller balances. Really wouldn't focus on saving for a down payment until you knock out a majority of those balances.
@Anonymous Sounds like an established plan! I like it.
FICO is moment-in-time, it doesn't matter what path you take credit scoring wise if your goal is to pay it mostly all off anyway AZEO style.
Personally unless the NFCU APR was higher than the other tradelines (it's unlikely that it would be) I'd simply pay all the small ones off and then tackle the big one if I were dumping it all in two months anyway. That's not a long time, if it were going to take me much longer to pay off everything then I'd absolutely go avalanche but in this case just nuke it from orbit.
@Anonymous wrote:@Revelate that makes sense. Hadn't thought about it that way.
What I was thinking is I don't know what the underwriters see when looking at a credit report. I know for me it shows balance history, not sure if it does for lenders as well. Was thinking getting them paid off as quickly as possible so the balance history is cleaner when it comes time to apply. But I don't even know if that is a thing haha.
It's not what UW's care about honestly especially talking mortgages.
The trended data is actually fairly new (and not yet universal to my knowledge in terms of all lenders reporting it) and no existing FICO algorithm makes use of it and a DTI calculation is done on current information as displayed on your credit report.
End of the day anything over call it 5% APR should just be airstruck for the same reason you stated above about money sitting in some cash account while paying non-trivial APRs on revolvers. Just get rid of it and start freeing up your cash flow at the same time you're prettying up your credit report and DTI metrics.