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  1. #1
    Junior Member
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    Oct 2017
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    1

    Should I open a new credit card to pay a collection?

    I only have 2 mastercards. Ive had them over 10 years. I want a visa because I have ran into places that dont take master card. I plan to use the card to first pay off a collection on my credit report (the new card will activate as soon as I make the first charge) and then pay off the balance next month.

  2. #2
    Junior Member
    Join Date
    Oct 2020
    Posts
    3
    I think it is better to have one visa and one mastercard, instead of two mastercard. I've had problems with stores what didn't accept my mastercard or visa cards and it's quite annoying. But having these two cards I think you will not often encounter this problem again. Also with these cards you will receive the full package of pros that they can offer to you. I don't suggest you to get more that two credit cards because it is not profitable to pay so much charges for customer services. Also it is not safe, because there are many cases of cyber crimes and theft of card numbers (I was wondering that there are many carding tutorials for begginers in the network).

    Last edited by wallace67; 10-20-2020 at 03:51 PM.

  3. #3
    Super Moderator
    Join Date
    Feb 2008
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    Near Philadelphia, PA
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    5,186
    Quote Originally Posted by Rukshana View Post
    I only have 2 mastercards. Ive had them over 10 years. I want a visa because I have ran into places that dont take master card. I plan to use the card to first pay off a collection on my credit report (the new card will activate as soon as I make the first charge) and then pay off the balance next month.
    It sounds like the main reason for you wanting to get a Visa card is because you want to shop in some stores that don't accept MasterCard. It's good to have a Visa card when you need one. I've had problems with stores not accepting American Express or Discover, and it's quite annoying. I've never had a problem with them not wanting to accept a Visa or MasterCard.

    Your second reason for wanting to get a new charge card may get you into trouble. Are you financially able to pay off the collection charges that are on your credit report? If you pay off your old debt by shifting it over to a new credit card, you'll still need to make monthly payments, along with paying the finance charges that the credit card company adds on. I'm surprised that you are able to get a new Visa card, especially considering that you have a collection problem showing up on your credit report. It's great that you want to pay off an old debt. I just hope you won't be creating a bigger problem by using a new Visa card to do it.

    ~ Rose

  4. #4
    Junior Member
    Join Date
    Oct 2020
    Posts
    7
    Yes, I agree that it is better to have one master card and one visa. Each of them has its pros and cons, but if you use them together, then they can overlap the minuses of each other.

  5. #5
    Member
    Join Date
    Nov 2020
    Location
    England Coventry
    Posts
    51
    It’s true that your credit score will likely get dinged when you first open a new credit card account. How many points you’ll lose depends on the type of credit score, but you can use 6-12 points as a rough guideline. That’s not a huge hit, but the news gets better from there. Because even though the “credit inquiry” that gets generated when you apply for a new credit card account will stay on your credit report for two years, most credit scoring models only factor it into their scores for roughly the first three to six months. About more details I can recommend you Mortgage Advice Derby, they will definitely help you with everything you need.
    Last edited by Gibsongi; 02-02-2021 at 12:13 PM.

  6. #6
    Senior Member
    Join Date
    Nov 2019
    Location
    New Jersey
    Posts
    425
    Since the primary reason for the Visa card is to open up other shopping options for yourself and it seems you have the ability to pay your debts, I think it's a good idea. But don't cancel either of your Mastercards. Just keep them. Just because you have a credit card doesn't mean you have to use them. As long as you can properly manage your monthly financial obligations, keep all three once you have the Visa. If you cancel one of the Mastercards, your overall credit rating will go down because you will have a lower longevity of credit card accounts. And having a new card will make that even more important. That is one factor in establishing your credit rating. If possible, use all three and pay them all off every month, or at least every other month.
    Absurdity is the only reality - FZ

 

 

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