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applying for new credit while having collection on credit
I want to apply for a new credit card but I am afraid to do so. I have a 3 collections on my credit 2 paid and 1 unpaid. I have filled out a pre-qualification app using my full social security number and it gave me a card option that I could be approved for. I wanted to know if it would be wise for me to apply for the card. I am trying to rebuild credit so that I can be approved for a home loan within the next 6 months. I was told that I needed at least two open revolving accounts and at least one installment account to help improve my credit score. Just to mention I am working on paying the other collection account that I have on my file. Looking for advice

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There are many factors goes into the credit card approval process. How old and how much (you owe) are the baddies, how many inquires you have, how many credit accounts you opened in last 6/12/24 months, if any, how many positive accounts do you have and how old are they... Some company like CapitolOne might not care much bout any of those, and they are more than willing give you the benefit of doubt, but others like US Bank/Citi Bank cares whole heck lot...

Like credit scores? The pre-approval site aren't created equal, sites like Discover and Bank of America? Are useless, put in your pet's name and SSN of 1234 into Discover site and see what happen... One way to tell if the offer is "good"? Is to see the cards they offered have specific interest rate, rather than range of rate like 12.99~22.9%... I would check CapOne's pre-approve site and see what comes up for you (be sure to check "average" credit rating on the bottom) they are pretty solid, among AMEX and Chase...

I personally been approved for 5 credit cards (30k limits total) in April/May of this year, with two 4 year old open collections of 10k total, and three paid tax liens, prior to those? I only have 2 secured cards opened in August of 2014, and even got turned down by Citi bank for secured card at that time, so it can be done.

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Generally, I'd say don't do it

until after that last collection is paid off. But you say that you "had an option that you could be approved for" then by all means.  Realize that you could still be denied. There are many sites on the web that will tell you that you can get a card, They get paid by the lenders to reffer new customers, so its to their advantage to tell you that you can get the card. But once the actual lender pulls your credit report you'll most likely be denied. 

There are very few lenders that will approve any new credit to anyone with anything in collections. 

If you plan on trying for a mortgage, then get that old collection paid off.  Take a look at your credit report and see if there is anything you can do to help "clean it up" and don't apply for any credit if your score is below 660. 

Good luck.

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On the unpaid collection try to get a "pay for delete agreement" and on the paid collections send them "goodwill letters" requesting the collection be removed from your reports. Do some research on "pay for delete agreements" and "goodwill letters". I am not sure what to tell you about the card, do some research on the card and card issuer to see if their preapprovals usually hold up or not.

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