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

[llsnmerriman]

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!~

[sonson]

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?

[MarineVietVet]

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@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!~

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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

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

[llsnmerriman]

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

[MarineVietVet]

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@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

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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

[llsnmerriman]

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!

[Wolf3]

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.