I'm 26 and looking to repair some of my bad debt. I made some mistakes when I was younger and looking to get myself on the right track.
My Fico score is currently 632 via Equifax. I have 2x open credit card accounts with perfect payment history (although one card is currently over utilized, but I will bring that down ASAP) totaling about 1.8k and about 10k in school loans (mostly perfect payment history).
I have 2x bad debts on my account that are in collection. One at ~1k and one at 350. Last payment I made on them is from Dec 09 and I live in NY.
What is my best course of action? I never made any voluntary payments to the collectors so the account should still reflect the last payment made in Dec 09. Should I hold out another 3 years for the stature of limitation? Should I pay them off? I do see that the collection accounts on my report show that they were open in '11 and '13. Do I need to worry about that or continue to go off of the last payment date on the actual credit card?
If I continue to ignore these bad debts, what are other ways I can continue to increase my score? Do utilities under my name help or anything similar?
Any advice would be super appreciated.
Look forward to hearing from you.