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KennelUp

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Pay off collections before opening new credit card
SITUATION: I have 6 accts in collections, totaling about $2k. I am finally back on my feet and looking to get my score back to 763.
QUESTION: I planned to open a new CC acct to make small $50-$100 purchases with and pay it off on time, every time but I also want to get rid of these collections. So...should I open the new CC as planned and pay it off along with one collection at a time? Or should I pay every collection off ASAP then start opening new CC's after my delinquent items are at least paid in full? Thanks in advance!

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Option 2

I would definitely pay every collection off ASAP then start opening new CC's after your delinquent items are at least paid in full. As long as those aren't paid off you're going to look like a big risk to any other lender. How do they know the new CC won't also go to collections?

As soon as you get those collection items paid, your score will improve and that will also help you be approved for new CC's.

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Do some reading on "pay for delete agreements" before proceeding.

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