Credit card offer from company that I defaulted on.

[ginlyn]

Hello, I'm new here.

In the fall of 2005, I was a young, single parent and I had an problems paying my monthly household bills. I stupidly began paying my electric, water, phone, groceries ect on my credit cards along until I had 3 cards that were out of control.  I attempted to correct them by going through one of those debt reconcillation companies that advised me to stop paying on them which I did in Oct. 2005. I paid that company until I realized all they were doing was taking my money and not actually paying my bills.

So one of the 3 cards I defaulted on was a Capital One. It's been 6 years. In that six years, I have no futher negative credit. I retained 3 store cards that I have had since before 2005 and they have all been paid current and I only charge on them enough to pay on them a couple of months and then pay them off to help build my credit . I have a current car loan and have paid off 2 car loans (1 due to a wreck). I know that these debts are set to fall off my report according to the reporting agency next October.  I have been thinking I need to apply for a major card to help boost my score and then I got a letter from Capital One offering me a credit card because "we'd like to have you back as a customer." I was thinking I do not need to try to take out a card from any of the companies I defaulted on. Can they tack on my old debt to a new card? I don't want to end up with another card that causes a negative ding to my report.

Any advice?

[Mekitcat]

I think they will forgive you, they did for me and I was blown away because I still owed them money. (It's a tax write off for them when people default on the cards) I was only given a small $300 dollar limit but it was a start for me to start rebuilding. I still had the CA collection on my reports when I apped. The Cap one charge off fell off one month prior to me apping.

I believe others on here had the same experience too.

What card are they offering to you?

[ginlyn]

Capital One Platinum MC with no annual fee 0% APR until June 2012 then 22.9% variable after that. It says I get access to a higher credit line after 5 on-time payments. I know the interest rate is pretty high. I just am not sure what card would be the best option and if this one would be a good option.

[Mekitcat]

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@ginlyn wrote:

Capital One Platinum MC with no annual fee 0% APR until June 2012 then 22.9% variable after that. It says I get access to a higher credit line after 5 on-time payments. I know the interest rate is pretty high. I just am not sure what card would be the best option and if this one would be a good option. This isn't a bad rebuilder card to have. Its a matter of your opinion some say its a sub prime card which it kind of is but it will put you foot in the door for prime cards down the road when your baddies fall off.

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And over all that isn't a bad offer either, mine was 24.90% with a $19AF

It will help you rebuild your credit too. But Capital One does hard pull all 3 so that's something to think about too.

Good luck if you chose to go for it! Let us know how it goes.

[ginlyn]

Okay, I applied for the offer online and was approved with a $500 limit! Thanks!!!

[Mekitcat]

Good for you!!! Congrats!

[cd2004]

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@ginlyn wrote:

Capital One Platinum MC with no annual fee 0% APR until June 2012 then 22.9% variable after that. It says I get access to a higher credit line after 5 on-time payments. I know the interest rate is pretty high. I just am not sure what card would be the best option and if this one would be a good option.

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yep I got that same offer in the mail last week and I had a Capital One card go to charge off about 5yrs ago. I was approved for a 300CL. This is one of the cards I will  keep at a $0 bal

[mAndrew1980]

Congrats on the approval! You're on your way to rebuilding!

[jasimae]

Congrats.

[RussianPassion]

I have an unpaid judgement from Capital One from 2008. They recently approved me for a Simple Rewards 300CL VISA... Go figure...

COngrats!