I defaulted on 2 Capital One cards in 2009, both with $500 limits. One of those went all the way through to wage garnishment (for a $1,700 balance thanks to all the fees / interest, etc) and was satisfied in 2010. The other account, nothing ever happened beyond normal collections which ended years ago. No idea why they didn't sue me on one account but not on both. However, it still shows on my credit report as late with a $2,000 balance, again thanks to fees, etc. It shows as owned by Capital One.
In trying to rebuild this year, I got both the Quicksilver and the Platinum MC, both with $500 limits. I have tried for the last 2 months to get a CLI (ahead of the merit increase given through the credit steps after 6 months) and, each time I have been declined. The reason they give specifically says it is because I have an account currently in default with them.
To vent for a minute: I honestly get their reason but: 1) that was 6 years ago, ) I paid the other defaulted account THREE TIMES above the original balance that was owed, 3) I had a car loan with CapOne that was paid to perfection for 3 years and was paid off, and, the biggest question, 4) Why on earth did you approve me to begin with if you had such an issue with the account in default?!?!?!?!?!
ANYWAY, my dilemma is this: The default account is about to age off my credit report in October of this year. Do I contact CO to try and settle the account (for the original $500 I actually owed because NO WAY am I paying them anywhere near $2,000.00)? Doing this would likely clear my name with them yet would also likely start the date over on my report and allowing the account to stay there another 7 years. - OR - Do I just let it go and give up on ever getting a CLI on my CO cards? I am not sure at this point if they will even approve the credit steps increase, and even so, that is just to $750.00. The entire reason I got these cards is start to rebuild my credit but that will never happen if my limits stay at a pathetic $500. I wanted to give these a year or so to garden and then begin trying to apply for other cards later this year. My scores have gone up since July about 60 points and my TU score is already at 603.
This is SOOOOOO frustrating. I knew when I defaulted on a ton of accounts in 2009 that I was destroying my credit but never truly understood how LONG the damage to my credit would last. It is also sickening to me to realize that I would have been so much better off to just file bankruptcy like I almost did in 2010. This would all be OVER at this point. Instead, I am just beginning and I feel like I will always be buried under this credit mess.
Sorry for venting. Any advice is appreciated, thanks!!
