Collection Agency

[Anonymous]

About 4 years ago, the only established credit I had was through a cell phone account.

I was 18. 

I had differences with 'sprint' and decided to stop paying my monthly balances. 

They referred me to a collections agency, which was later bought by another agency. 

The balance was minor, around $200, which was recently paid off, not disputed.

Everytime I apply for a credit card, I get declined. Must it be for this reason ?

I know of youngsters who are getting nailed with credit card offers - Preaproved, and applied approvals.

But the only thing they will offer me is a secured credit card.

Is the fact that I was referred to a collections agency the sole reason for why the past 4 years I am not getting accepted when applying for cards ?

When a collections debt is paid, will the name be removed from the system completely ?

If so, how long ?

What is the best advice for establishing credit ?

It is time for a new car

- New York

[fused]

Hi and Welcome to the fora! Please read the scoring thread in my siggy.

[Anonymous]

Your being declined for credit is more likely due to lack of credit history.  It looks as though the only thing you have on your CR is a collection account, which can not be a good thing.

Even though it is a paid collection it has the same impact as an unpaid one.

This will stay on your report for 7 - 7.5 years from the DOFD. 

Who did you pay, the CA or Sprint?  You can try a GW letter asking them to remove the account from your CR.

Getting a secured credit card may be the only way to go to establish credit.  Also, the more you apply the more inquiries you will have.  Too many inquiries is not good.

[southernficoaddict]

Hi! and welcome.  We also had no open CC's when I started this back in April.  Read some of the posts on the Credit Cards forum and you can also go to the website "whogavemecredit.com".  You definitly need a couple of open revolving accounts.  We got a big score increase opening a couple of accounts.  From what I read, BoFA has a good secured card, if thats all you can get.  Also HSBC does a soft pull to pre-qualify you before you apply and get a hard pull.  Also, you need to get to work on those GW letters to whoever you paid on the CA account.  Who was the CA?  Some are better with GW's than others.

[Anonymous]

I paid the CA.

Sprint is no longer in service...

Why do you ask ?

[Anonymous]

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@Anonymous wrote:

I paid the CA.
Sprint is no longer in service...Why do you ask ?

Because some CAs are easier to GW than others. Some CAs are also better about deleting early than others.

But Guiness is right (ain't she always?! Yep!) ... you need to get your patootie in gear and GW that collection ... then get yourself either an Orchard Bank card (easier to get than most) or a secured card (BoA is supposed to be the best) and start rebuilding your credit.

Once you've had a new CC for roughly 3 months, you'll see your credit rise, rise, rise!!

[llecs]

I'm probably repeating someone else here, but take the secured card offer. After that reports and you develop some history, your scores will shoot up and you'll have more unsecured CC options.

[Itsmeagain]

Why don't you pull your credit reports and SEE what the problem is?

[Anonymous]

Try getting a card from householdbank.com. Someone recommended that for me (for my 18 year old daughter trying to get a couple of cards to get established) and she was approved for a $300 limit - unsecured, no annual fee. She had that for a month and was then approved for a $2500 BofA card.

Also, if you have one major credit card that sometimes makes it easier to pick up a store card. You need to get a couple of cards to establish credit.

The collection account will be there for 7 years unless you can send them a GW letter and beg for them to remove the entry. Sometimes they will, sometimes they won't - but you still need some credit history. You may have to accept the secured card.

[Anonymous]

Merchants Credit Guide purchased the balance from NCO Financial.

They said that my name will clear after 90 days, but that is just based on their word.

I do not know for sure.

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