Utilization Boost: "Pay off" or "Pay Down" Suspended LOC

[Peterparkyr]

Hi all, 

I am working on a 12-14 month strategy to boost my score so that I can purchase a new vehicle next year.  This strategy includes the following steps:

1. March 2022 - Pay down existing revolving balances (Current util 83%)
2. April 2022 - Apply for 2 new CCs this year that will age 1 year prior to the vehicle purchase. 
   • Note:  I currently have only 1 open revolver, so I need 2 more to maximize score boost
3. April 2023 - AZEO for score boost
4. May 2023 - Apply for new auto loan

I will break things down as best I can here:

General Credit Context:

• Fico8: EQ628 TU609 EX629
• Fico9: EQ637 TU639 EX622
• I've got a few fairly recent COs that are all paid/settled (around 4years old).  No BKs or public records.
• no delinquent balances due
• Just openned Disco Secured for 2.5k in January
  • $0/$2.5k
  • this is my only "open" revolving account
• The big ones:
  • NFCU CC - $19,845/$24,000 - account closed (keep in mind this will be gone by March 2023)
  • NFCU LOC - $12,422/$15,000 - suspended

Here is where I need some advice in order to make the next move.  I plan to open 2 new CCs in April.  Both of the NCFU accounts are being factored into overall utilization which is 83%.  I have $13k in savings which I will use to pay off the NFCU LOC.

The question/delimma - In order to maximize my chances of CC approval with good Starting CLs should I:

1. Option 1:  Should I pay off the LOC completely, which might close it and remove it from util calculation?  This approach runs the risk of increasing my util but possibly opens up the potential to open a new NFCU LOC (no gaurantee that I will get approved at this time though)
2. Option 2:  Should I pay down the LOC, leaving around 1k on it?  This approach will reduce my utilization to around 43% - hence providing a score boost.

Thanks all!

PS - I know this question is similar to one that I asked about a month ago - but the nuance here is whether or not the "pay-off" or "pay-down" the LOC.

[FireMedic1]

First who closed the NFCU account and why. I dont think your going to get another LOC with a closed and suspended account. Dont need it. You could grab a couple more secured cards to hit 3. Pay down which account has the higher interest first. $ saved. Leave at least 6 months of bills in savings so no more baddies hit you if something comes up. Dont touch it. Got some aging to do with almost all the accounts open.

[Peterparkyr]

Thanks, 

Nfcu closed due to low scores.  No worries on that front.   

Should I "pay down" or "pay off" the LOC?  It's the higher interest rate of the two.