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jwherold

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What is better... paying off a collections or having lower utilization?
Okay, so I could pay off a collections of $412 with my DC card, which will take my utilization from 37% to 40%. or, should I leave the collections alone and keep my utilization at %37? my credit is going to be pulled next month and I need the best score possible.

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Any negatives on your credit report are going to be reported for 7 years, and that is the time frame creditors look at in determining your eligibility for new credit.  If it shows that the collection was paid off recently, that is better than seeing an open collections account, but the fact an account went to collections is not good.  And, your credit card utilization should drop because the best utilization rate is below 20%.

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