Baddies/Collections vs Util Paydown

QuestionsBaddies/Collections vs Util Paydown
Kristan Bechtel asked 4 years ago

Hi All, 


Im currently in the rebuilding process in hopes for applying for a Mortgage maybe a year from now.  


What is better to do? Pay down utilization first or get rid of collections via PFD first? Which has bigger impact sooner? I have no lates on any of my installment or revolving accounts. I have 3 credit cards with over 80% util and 5 others with util between 0 – 2%. 


Negatives: 2 State tax liens – almost $ 1200 total (about $ 600 each). i know that once these are paid i can get a release letter and provide it to the court and have these removed from my credit profile. 

                    $ 1000 medical collection

                    $ 815 medical collection

                    $ 141 medical collection

                    $ 74 Progressive insurance collection. 


Which route do you think I should take? Lower my util first or get rid of baddies?


Thanks for your help. 



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