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Established Contributor
MountainHiker
Posts: 651
Registered: ‎08-07-2012
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Does ONE single older collection account STOP new CC approvals?

I have only ONE ding on my credit file. 6 year 4 month old Cell phone unpaid collection.It has a zero balance on my credit report.It will fall off my credit in seven months.I really want to pull the trigger now and get a new credit card but I don't want to ruin my chance of getting a premium card.I don't have previous knowledge with negative or collection accounts, thus I don't really understand the impact my credit has suffered by having just 1 collection on my credit file.

 

All my FICO & PLUS credit scores are in the very low 700's(708-710-705), and I have excellent auto payment credit for a 2.5 year period. Am I worried about nothing and I should just go for a new account? Or should I wait till that one delinquint fall off my credit in march 2013 before applying for a new credit card? I do have a 10 month old Wells Fargo Secured Visa that is helping my credit,and Wells Fargo has told me they will turn my card into a unsecured card in December. I do plan to go after a new car in a few months and Nissan has told me that based on my Credit score, and prior Nissan payment history that I will qualify for a lease. I'm thinking, if I can get a auto lease which is more difficult than a purchase, why not a premium credit card? Is that a reasonable comparison?

 

Should I wait and be patient till 2013, or GO for that Citibank Visa that I want? WHAT SAY YOU?

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wreith
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Registered: ‎06-13-2012
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Re: Does ONE single older collection account STOP new CC approvals?

I would say that if your only baddie is that one from over six years ago and you have had nothing but positives since you should have no problem getting a decent credit card.  With your scores I would think a Amex Zync, Discover More, Chase Freedom, or one of the Citi offerings should be doable for you.  I would also suggest the walmart card for the free monthly TU score with paperless billing.  I am in no way an expert, but from what I've reading on these boards you should be good for the ones I mentioned.

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Crashem
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Re: Does ONE single older collection account STOP new CC approvals?

I asked you some questions on your other thread.  Can you answer them?

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atarvuzdar
Posts: 375
Registered: ‎01-20-2012
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Re: Does ONE single older collection account STOP new CC approvals?

If that's the only negative on your report and it will fall off around March 2013 you should see a nice jump when that falls off. Letting the secured card age to over a year will also be beneficial. That being said, your scores are pretty good already so you've got a great shot at getting a prime card now. Waiting will possibly give you a higher credit limit on any card you are approved for.

 

Long story short, you could probably get a card that you want now, but waiting will open up even more doors.

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gettnthere
Posts: 912
Registered: ‎06-14-2012
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Re: Does ONE single older collection account STOP new CC approvals?


Crashem wrote:

I asked you some questions on your other thread.  Can you answer them?


+1. If you answer, it would allow crashem, myself and others to be able to advise more accurately



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Established Contributor
MountainHiker
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Registered: ‎08-07-2012
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Re: Does ONE single older collection account STOP new CC approvals?


gettnthere wrote:

Crashem wrote:

I asked you some questions on your other thread.  Can you answer them?


+1. If you answer, it would allow crashem, myself and others to be able to advise more accurately


Thank you guys and I did put my response in the other thread. This credit building thing is a step by step process. Especially coming back from damaged credit. I was once able to sign for anything I needed and I'm trying to get back there again.

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Established Contributor
MountainHiker
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Re: Does ONE single older collection account STOP new CC approvals?


wreith wrote:

I would say that if your only baddie is that one from over six years ago and you have had nothing but positives since you should have no problem getting a decent credit card.  With your scores I would think a Amex Zync, Discover More, Chase Freedom, or one of the Citi offerings should be doable for you.  I would also suggest the walmart card for the free monthly TU score with paperless billing.  I am in no way an expert, but from what I've reading on these boards you should be good for the ones I mentioned.


Hi Wreith

Some of the credit card companies on your list I had accounts with and the CC went to collection and unpaid, but fell off my credit report because the debt expired after seven years.I wish getting Chase was a possibility.I had a Chase Circuit City that went unpaid, and was unable to pay the debt due to illness.The debt expired and fell off my credit report as well because of the seven year rule.Not so sure how forgiving Chase might be.They rightfully should want to be paid their money. I do feel horrible about the debt going unpaid. Sadly, we can't always control illness.  I've never had CC with Discover, Citibank or Chemical Bank. Had only Cap1, BofA Platinum, AX Blue, and HSBC.

EQ-732FICO,EX-PLUS 740,TU-725FICO
Goal 750 Across

NFCU Signature Cash Rewards Visa, Chase Freedom Visa, Wells Fargo Visa Secured
Established Contributor
MountainHiker
Posts: 651
Registered: ‎08-07-2012
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Re: Does ONE single older collection account STOP new CC approvals?


atarvuzdar wrote:

If that's the only negative on your report and it will fall off around March 2013 you should see a nice jump when that falls off. Letting the secured card age to over a year will also be beneficial. That being said, your scores are pretty good already so you've got a great shot at getting a prime card now. Waiting will possibly give you a higher credit limit on any card you are approved for.

 

Long story short, you could probably get a card that you want now, but waiting will open up even more doors.


Thank you.

Good to read encouraging thoughts about rebuilding credit. I was very pleased to see my scores go up and was surprised to see them in the low 700's. I think my auto history is propping up my scores and the secured visa gave it another boost.But when those derogs fell off, my score went up by 80 points. That last derog should help as well. I think in total there was nearly 10 derogs on my file. I do have about 8 deferred student loans in good standing on my credit and look forward to paying them off. They are average about 1.8 year old.My oldest credit referrence is a 9.5 years old auto loan in excellent standing. All that has helped.

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LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: Does ONE single older collection account STOP new CC approvals?


atarvuzdar wrote:

If that's the only negative on your report and it will fall off around March 2013 you should see a nice jump when that falls off. Letting the secured card age to over a year will also be beneficial. That being said, your scores are pretty good already so you've got a great shot at getting a prime card now. Waiting will possibly give you a higher credit limit on any card you are approved for.

 

Long story short, you could probably get a card that you want now, but waiting will open up even more doors.


I would wait.

 




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Established Contributor
MountainHiker
Posts: 651
Registered: ‎08-07-2012
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Re: Does ONE single older collection account STOP new CC approvals?


LS2982 wrote:

atarvuzdar wrote:

If that's the only negative on your report and it will fall off around March 2013 you should see a nice jump when that falls off. Letting the secured card age to over a year will also be beneficial. That being said, your scores are pretty good already so you've got a great shot at getting a prime card now. Waiting will possibly give you a higher credit limit on any card you are approved for.

 

Long story short, you could probably get a card that you want now, but waiting will open up even more doors.


I would wait.

 


I know waiting would help my cause because time could be the difference between a clean report vs one that has one older collection.My concern is the age of my accounts moving forward. I'm in college and will be adding additional student loans in the very near future( this fall and spring).That will for sure make my credit history younger, and make me less desirable to credit card approvals.Do any of you agree?

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