Paying State Taxes Lien vs. Paying Medical Bills

Mar 142011
 

I need advice on which would be best for me in improving my credit score.

 

I have a tax lien of $1738.00 and it is elligible for a 12 month payment plan which I have signed up for.  I will have the amount to pay this in full come April 1st however I also have approximately $1600.00 in medical bill collections (6 accounts total) and was wondering which would make more sense in paying?  Should I do the monthly plan for 12 months with the tax lien and use the available monies for the medical debt?

 

Thanks for the advice. 

Should I bother?

Oct 202010
 

I have a few negative items on my credit report and I’m wondering which of these I should focus on to help rebuild my credit the most.

 

I’m currently at about 75% Util on my CC’s.

I have 1 60 day late and 2 30 day lates from August 2007 to March 2008 on an old HSBC account that I paid in full and closed. I was in the Navy at the time and was deployed for those dates.

I have 1 closed CA status for an old issue with Comcast. I forgot to return my cable box and I guess my new address never got updated so they charged me and sent it to a CA.

 

I know the CC Util is a big issue and am working hard to pay that down.

 

Should I bother trying a GW to HSBC to clear the late payments. Are they old enough now that they aren’t really having a big effect or are they still significantly detrimental. If I do send a GW letter should I include something about my being deployed with the Navy at the time?

 

Would it do any good to contact Comcast directly about the CA or should I approach the agency directly? I still have the cable box (I put it in a closet and forgot about it until I saw the credit report) so id rather not pay the $400 they want but I don’t know if I have another option.

 

Thanks in advance

Which to pay first?

Mar 172010
 

I have 3 credit cards and one charge off on my credit and I’m wondering which to pay first to improve my credit score quickly.  I have to buy a new car in the next few months because mine is getting old and costing me more than it’s worth.

 

Card #1 – owe $230 at 9% interest

 

Card #2 – owe $235 at 9% interest

 

Card #3 – owe $561 at 11% interest (this card is closed)

 

Charge off – owe $521 (no interest, obviously).  This shows up under the “accounts” section of my credit report, not under collections.  The description is “charge off/bad debt” and they ARE reporting my current balance and payments

 

 

My current score with Equifax is 679.  I’ve done the FICO Score Simulator with the credit card debt, but I haven’t been able to find any advice/information on what paying off a charge off will eventually do to your score.  I know in the short term it could hurt me, but will I be able to recover in 4 months, which  is when I plan to buy a car.   So right now, I am making payments on all accounts and have been current on all accounts since September 2007.  Should I put more towards the credit cards or the charge off?

 

 THANKS for any knowledge you can impart!