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?
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.