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.