I currently have 1 account in collections and 3 credit cards over 30% utilization.
I can pay-off the collections account or make a big dent on my credit utilization.
Which one will have the biggest affect on improving my score?
That's an important data point for anyone that offers advice..
IMHO with a collection that recent, it's hurting you more than the uti.
That said; others may have a different opinion so see what they have to say.
I would say pay the collection. Stop the bleeding and let your credit heal. Are they updating the file every month? I say try to get a PFD that will boost you bigger than the lower utilization.
Update of a collection that states it remains unpaid essentially results in FICO considering the period of delinquency to have been reported as now being longer, and thus effects scoring. Is the debt collector updating monthly?
Additonally, the debt is likely still within SOL, and thus there is the possibility of filing civil action seeking a judgment.
Paying ends that possibility.
Paying down your balance on revolving accounts can be done at any time, and thus obtain a reduction in % util.
I would likely, on a recent debt, make a PFD offer, and thus both discharge the debt AND seek removal from scoring if they accept.
Portfolio is a debt buyer, they paid maybe 100 dollars for the account. You can offer 500 to settle. Start there
I’m not sure who original creditor was. But I would look at agreement and see if arbitration is in contract. Then I would send letter electing arbitration. Personally, I would not pay a JDB