Reply
Valued Member
jugstore
Posts: 40
Registered: ‎08-09-2011
0

Credit Rebuild - when to apply for credit after CO

Hello Myfico members, 

 

I'm in the process of rebuilding my credit and would like some advice.  I have a Cap One CO that was charged off in 9-2009 after a few strings of 30-60-90-120 lates, etc.  The expected removal date is 9-2016.  In 2010 I got an Orchard Bank card ($300CL) that was recommended to me when I started using credit karma to gauge my scores.  I also have an Emblem Mastercard that is a payoff mechanism for Jefferson Capital,  the CA for the Cap One CO.

 

I would like to know if it is appropriate to apply for a new CC while the Cap One CO is still on my report.  I applied for a CITI card in spring 2012 and got shot down for previous delinquencies.

 

I'd like to get a long term card before 2016 but I don't want to waste hard inquiries on a laughable endeavor.

 

When should I research and apply?

 

Thanks myfico!

 

 

 

 

---------------------------------------------------------------------------------------------
Gardening since 5-2014
Mega Contributor
RobertEG
Posts: 17,832
Registered: ‎03-19-2007
0

Re: Credit Rebuild - when to apply for credit after CO

Two separate issues, in my opinion.

First is their act of having to charge-off the debt itself.  That is a creditor statement that the consumer was delinquent to the point that the creditor considered payment would not be made.  A damaging statement in any manual review, even if the debt was eventually paid.

 

Second is what the consumer did after being advised that the creditor had taken that action.  A charge-off does not excuse the debt. 

If the debt remains unpaid, that is further indication that the consumer is a repayment risk.

 

Application for lower level cards may involve only an evaluation of current score.  However, as one seeks better terms and/or higher CL cards, the chances of manual review increase, and thus their awareness and consideration of a prior charge-off.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}