topic Re: Credit Card Offer for Old Debt in Rebuilding Your Credit

Credit Card Offer for Old Debt

NikJ4 — Tue, 03 Nov 2009 03:52:05 GMT

I recently got an offer for a credit card which will cover a previous debt I have with another company. The collection agency is offering me a Visa with a balance of the amount I currently owe. As I pay the debt down I will have available credit limit. Should I or shouldnt I? I am just thinking about waiting until I have some more $$ when I finish school to pay the debt off and be done. I dont know what to do. I have fallen off the wagon and now I have to think smart. Please help.

Nik J

Re: Credit Card Offer for Old Debt

llecs — Tue, 03 Nov 2009 13:41:54 GMT

I'd be leary of those offers. This isn't from Jefferson Capital, is it?

Re: Credit Card Offer for Old Debt

Anonymous — Wed, 04 Nov 2009 02:45:00 GMT

I'm curious whether they would lower your credit limit every time you made a payment until your balance was zero, but so was your limit.. It definitly smells like a scheme.

Re: Credit Card Offer for Old Debt

RobertEG — Wed, 04 Nov 2009 03:30:25 GMT

The CA is offering this? Sounds like a way for the CA to get its money now, and then shift the debt to possibly even worse terms to another.

The new CC will do a hard inq, reduce your AAoA, give who an astronoimical interest rate on that card, give you a crappy CL, and just increase your debt at a higher interest rate than the CA can tack on.

It looks like a skunk, and smells like a skunk, so it is probably a rose?

Re: Credit Card Offer for Old Debt

Anonymous — Wed, 04 Nov 2009 03:31:40 GMT

My mom got one of these offers. Make sure to read the fine print. They offered her the same BUT they stated that once the debt was paid they will then submit the credit card application to a thrid party. That third party is the one that will have to make the decision "approved" or "not approved". The collection agency does not guarantee that you'll get approved.

Re: Credit Card Offer for Old Debt

RobertEG — Wed, 04 Nov 2009 04:16:21 GMT

WOW!

By the time it is over,they have you so confused and commited to their uncommitals that it makes my head ache!

I would borrow from Tony Soprano before I would agree to something that I dont even know what I am agreeing to!