Regaining Capital One's trust

[Noetek]

I had a credit card several years ago from capital one and for whatever reason failed to keep up with my payments and eventually (stupid me) just stopped paying it. The amount of 1,100 got sent to collections and got stalked by collectors for all these years. Unfortunatley was not able to pay it, had incredibly hard times and was living paycheck to paycheck. So last month i called in and payed off the amount in collections. My question is, would capital one take me into consideration again after being so irresponsible with them? Would they ever give me a credit card/loan?

[gdale6]

Yes, you could probably get one right now other have done so with a Cap-1 CO still on their CRs, the fact that you paid it off helps as well.

[BeMerry]

Yes, you can! i went through the same thing but due to illness. i got approved for a capital secured card while on a payment plan with the CA. They asked a $99 deposit for $200 CL. they didn't approved me right away because they wanted to check my address.

[jramos402]

Yes, I currently still have a Cap 1 CO on my report for about the same amount as yours that I have yet to pay anything on and they just approved me for a $200 CL secured card with only a $49 deposit

[RobertEG]

I would presume that "trust" with a credtior = their risk of making money or taking a loss when extending credit.

When you paid the debt, did the OC still own it?

A usual scenario on old debt is for fhe debt collector to first recoup a portion of the debt by charging the bad debt to profit and loss, and declaring that business loss as a charge-off with the IRS, thus reducing their tax obligation

Next step is often to then sell the debt.  Taking a charge-off does not remove the continued obligation of the consuer for the entire debt.  Some debt collectors deal in the high risk business of attempting to collect on debt that credtiors have determined will not be paid, and thus pay only pennies on the dollar.

Once the OC has sold the debt, they still have a net loss, and thereafter dont get a penny of any subssequent payment.

If the debt collector owned the debt when you pay, the OC gets nothing, and is still left with a net loss.

Having that history is usually not conducive to extending new credit with them.

[Chris679]

I ran up $300 with Cap One and didn't pay a dime for 4 yrs. The bill was up to $1000 before I finally settled for about $650. 4 months after that they gave me a Platinum MC unsecured with $500 limit. A few months of use and they auto CLI to $3000. Now that card is a QuickSilver with $6000 limit. They have a short memory and their niche is people who are building credit.

[gagirl82]

New Contributor

Posts: 64

Registered: ‎03-09-2010

Re: Regaining Capital One's trust

‎02-24-2014 11:50 PM

I ran up $300 with Cap One and didn't pay a dime for 4 yrs. The bill was up to $1000 before I finally settled for about $650. 4 months after that they gave me a Platinum MC unsecured with $500 limit. A few months of use and they auto CLI to $3000. Now that card is a QuickSilver with $6000 limit. They have a short memory and their niche is people who are building credit.

Hi,

Did you contact capital one to settle or did you settle with a collection agency? Also, was the debt being reported as a charge off?

[gagirl82]

I ran up $300 with Cap One and didn't pay a dime for 4 yrs. The bill was up to $1000 before I finally settled for about $650. 4 months after that they gave me a Platinum MC unsecured with $500 limit. A few months of use and they auto CLI to $3000. Now that card is a QuickSilver with $6000 limit. They have a short memory and their niche is people who are building credit.

[gagirl82]

Hi,

[gagirl82]

Did you contact capital one to settle or did you settle with a collection agency? Also, was the debt being reported as a charge off?

[ChangeIsPossible]

The main deciding battle with Cap 1 will be your current credit score.

[Noetek]

The collection agency i settled with was portfolio recovery, which got it from another collection agency which i initially ignored. So the amount got tossed around to 2 collection agencys after capital one. Im not sure if the amount was a charge off.

[NewYxox]

I also have a Charge Off on my reports with Capital One that was just recent in Nov and they approved me for another secured card with a limit of $500 just this week. I'm currently trying to GW that old one off my reports but they are a tough cookie on those things!!