debt settled now getting credit card offers

I had just settled my last debt account but i have settled with about four different creditors on debt i have had lasting about three years. I have had a lease for three years and have made payments on time as well as two phones that i was never late with payments on for about seven years and i also have had other credit cards which i had payed off in full. I am just a little confused because i had just gotten a very good credit card offer with a low limit and an offer of months to pay if off with no interest. My credit is very bad but im still getting this offer but why? And will having that credit card and making correct payments on it help my credit rating increase? How much of a positive affect can it have on my credit report or rating?

How much of a positive affect will a new card have on my credit report or rating?

—mike

Hi Mike,

It sounds like you are saying that you were in a settlement process that lasted 3 years and you just recently funded the last settlement. You have other accounts you that were not part of the settlement (the other credit cards you paid off in full).

Are your 2 phone accounts and lease showing up on your credit reports now?

I have seen credit profiles bounce back after debt settlements are completed in a matter of a few weeks; a few months; a couple years. I rarely work with files that take 3 years to complete settlements so I am hazarding a guess alongside my experience with the other details you provided.

Given the limited credit history you outlined (no secured loans like a car or mortgage), and depending on how many revolving accounts you have in your file that did not go delinquent like the 4 that were settled, and assuming the settled accounts are all reflecting accurately on your reports,  if you were approved for the new account it could help raise your score, but not immediately. Do you have open revolving unsecured accounts right now? If you have 2 or 3 already, you should look to establish other forms of credit than a credit card. If you do not have any revolving accounts that are active today, establishing a couple will be part of your credit rebuilding strategy.

If you have additional questions or concern please post a comment reply. Best to you and your credit in 2012!

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