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Valued Member
Posts: 28
Registered: ‎03-26-2010
0

Paid off all Deliquent/Collections, CC offer too soon?

Hi Everyone, I have another question, lol....  I recently paid off all collection accounts on my credit report late Feb/ early March.  HSBC was 1 of the credit card collections I paid.  I have 2 installment loans in great standing, but feel I need a CC to start boosting my score since it took a hit after paying all collections.  I have been sending GW letters, but no luck.  Anyway, my question is; today in the mail I received a pre-qualified offer from Orchard Bank/HSBC for a platinum MasterCard.  I hate taking out a CC but I think it will help improve my score w/ responsible timely payments of course.   Do you think it's too risky to apply to the pre-qualification or should I wait a couple of months?  I'm afraid  it will be declined and my score will take another hit.  Any advice is appreciated.  Thank you!~

Regular Contributor
Posts: 241
Registered: ‎12-04-2009
0

Re: Paid off all Deliquent/Collections, CC offer too soon?

i would wait a couple of months, wait til the collection companies report that you have paid them. also, if you can get a better card than orchard try and get it. what are you fico scores like?


Starting Score: EQ 548 [ Feb 2010 ]
Current Score: TU 663 EQ 686
Goal Score: 700


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Moderator
Posts: 17,419
Registered: ‎07-14-2009
0

Re: Paid off all Deliquent/Collections, CC offer too soon?

 


llsnmerriman wrote:

Hi Everyone, I have another question, lol....  I recently paid off all collection accounts on my credit report late Feb/ early March.  HSBC was 1 of the credit card collections I paid.  I have 2 installment loans in great standing, but feel I need a CC to start boosting my score since it took a hit after paying all collections.  I have been sending GW letters, but no luck.  Anyway, my question is; today in the mail I received a pre-qualified offer from Orchard Bank/HSBC for a platinum MasterCard.  I hate taking out a CC but I think it will help improve my score w/ responsible timely payments of course.   Do you think it's too risky to apply to the pre-qualification or should I wait a couple of months?  I'm afraid  it will be declined and my score will take another hit.  Any advice is appreciated.  Thank you!~


 

Unfortunately paying off those collections will not help your score. The damage is the same whether a collection is paid or unpaid.

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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Valued Member
Posts: 28
Registered: ‎03-26-2010
0

Re: Paid off all Deliquent/Collections, CC offer too soon?

They are Eq 576 TU 585, they both dropped after paying off collections, EQ was 595, TU was 600.  TY for the input

Moderator
Posts: 17,419
Registered: ‎07-14-2009
0

Re: Paid off all Deliquent/Collections, CC offer too soon?

 


llsnmerriman wrote:

They are Eq 576 TU 585, they both dropped after paying off collections, EQ was 595, TU was 600.  TY for the input


 

Your score probably dropped because when you paid it updated the accounts and made them look more recent. Just the act of paying did not lower your score.

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

 

 

 

Valued Member
Posts: 28
Registered: ‎03-26-2010
0

Re: Paid off all Deliquent/Collections, CC offer too soon?

Everything has updated as paid on credit report and w/ companies.  I have received all my letters stating paid.  Im just afraid its too soon to go through the pre-qualification bc im afraid of a decline and another hit to the credit score. Thx for the replies!

Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Paid off all Deliquent/Collections, CC offer too soon?

I doubt that 1 more inquiry is going to make any difference to your credit at this point.   The best you should hope for is a secured card with HSBC.    If you can afford to put down a decent deposit on a secured card with them, I would try it, otherwise wait until you can fund a secured card.

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