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jbailey2002

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To improve my credit score, should I pay down my maxed out credit cards or pay off collections?
I am trying to raise my credit score to buy a house. I have 2700 in medical collections and 7000 in credit card debt (must maxed out). Which is more important to pay off 1st to raise my score the fastest?

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well you need to do both,  

as both are a mjor impact as to why you have a low Credit Score ( and you do not say what your Credit Score is now )

you state "must maxed out"  like you are not even sure what you have as credit limits.   that is sad that you have no clue,   you get monthly statements that you don't even look at I guess.

when you pay off your medical collections you need to request ahead of time to have them deleted when you pay them off.  ( you have a 50/50 chance that they will )  

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Go after fixing the collections first

Collections are more damaging than maxed out cards as long as you are still making at least the minimum payments.  Negotiate a payment plan for the medical collections and do your best to use the payment as a bargaining chip to get the collection removed from your credit.  Be nice, but firm with the collector and let them know that you can pay their debt or a different debt, so you'll pay them if they will remove the collections activity.  If they agree, get it in writing and then stick to your word and pay them off.

Credit cards maxed out are easy to fix on your credit later...just pay them down.  If you can't negotiate having the collection activity removed it will stay with you for 7 1/2 years.

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