Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

daveg38 — Wed, 18 May 2016 18:16:38 GMT

Although "YMMV" always applies, I always thought it would be helpful to know Capital One's 'shtick' when it comes to blacklists and denials out of CH7.

We know that people are getting blacklisted for years. Some get back in mere weeks after CH7. Now we, as credit conscious individuals, know there's always extinuating circumstances in the world of Capital One that merits approvals and denials. However, there's no possible way Capital One could play 'favorites' (unless your Samuel L Jackson). So don't think a denial is the "end all be all" in your credit journey, or that someone's on a witch hunt.

Anyway, factors in one's credit file will always be the final denominator in determining eligibility.

What's always confuses many (present company included) is the "1 year after chargeoff'. For example, in a case like mine, I charged off $2200 with Capital One on 3/2014. I filed Ch7 on 2/2016. So I would pass the 1 year chargeoff test according to common knowledge and some discussions with Sr. Analysts about this.

I hit apply on the Venture button just to pull some helpful rules for y'all. These rules are 'usually' enforced here in the United States, but when you get 'Peggied' by one rep and end up in some call center off shore, seems that some rules don't necessarily apply. Just know it's in their TOS.

Under most credit applications on Cap1's site, it states:

"You may be ineligible to apply if: (i left out the obvious income and age requirements):"

I have applied for a Capital One credit card 2 or more times in the last 30 days.
I have 5 or more open credit card accounts with Capital One. (so this tells us that up to 5 are available)
I have a past due Capital One credit card account. (note "past due" and "charged off" are separate languages)
I am over my credit line on a Capital One credit card.
I have had a Capital One credit card that charged off within the past year. (ok, so that means chargeoff - not CH7)
I have a non-discharged bankruptcy (one that is still unresolved). (note that it doesn't say "non-discharged bankruptcy and Cap1 was included...")

IF such a thing as a Capital One blacklist exists, consider this:

Did you bounce payments frequently or suddenly close your account before the next check cleared? The latter may not only be fraud, it could get you BL'd.
Did you storm up to the Capital One executive office and commit an act of violence or make demands? Nobody likes violence or unmerited vitriol.
Did you include 4+ cards in a bankruptcy for a massive amount? You could be seen as a credit risk after you're discharged. Especially if you're charging off north of $20k.

As a subprime lender, Capital One is probably the undisputed champ in forgiving consumer financial woes and extending credit to those in rebuild. Credit card champ, that is - we all know CreditOne may be easy, too, but I hardly call them 'subprime'.

To the newcomer:

Numerous individuals on these forums have contributed a wealth of information on Capital One. Before spending your precious hard pulls, consider this:

Have you tried their prequalification form first? It's pretty much set in stone that Capital One has a spot-on prequalification, although know in advance a prequalification doesn't guarantee an approval.
Have you read BK Friendly Credit Cards Pt. 2? It contains many, many posts about Capital One's approval/denial status in different situations.
What does your credit file look like? Lacking positive trade lines, too many inquiries and a short credit history are factors that play into any credit approval.
Is your yearly income / 12 at least $425 more than your stated rent/mortgage payment? Capital One needs to see this. It's in their TOS.
If denied, did you recon in chat or over the phone? If you're yet to recon, my suggestion would be to send the EO a very honest email. Sometimes a Sr. Credit Analyst can assist you - nearly all of them are Stateside.
If none of this applies, what time of day do you intend to apply? Some say Tuesdays/Wednesdays at 12:00 noon are optimal. This is not set in stone, however, but maybe worth a try.
Prequalification is by no means the only means to apply. Prequalifications are essentially explained like this: Capital One asks CRAs for a list of individuals that fall into a set of parameters. CRAs send the list to Capital One. When filling out the form, if your info matches what Capital One requested from the CRAs, you'll be given a firm prequalification with a specified interest rate that falls into the parameters of what they are looking for, and willing to offer. You MAY or MAY NOT 100% of the time see a SP inquiry. To this day, I am yet to see anything from EX on Equifax or Experian in terms of a soft pull. Fill out an application if you feel strongly enough that you'll be approved...but again, YMMV.
Are you opted in to receive prequalified offers? Confucious say "That which may not happen online, may happen in mail." This isn't 100% true, but for some (me probably being one), opting out tells the CRAs not to send your info for potential prequalification. Plus, opting into to receive offers often times renders specials not widely advertised...

To those following the How To: BK to 700 guide, know it works if you let it work for you, and is another means to get in the door of Capital One.

This guide/informational post is not perfect, and I would appreciate others helping me add more to this. The more we nail down some type of guide regarding Capital One and Ch7/13, the better we'll get at knowing when to pull the trigger.

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Scupra — Wed, 18 May 2016 17:37:41 GMT

Great post! I think we should add a bolded point that being pre-qualified is not a must in order to be approved A lot of people check pre-qual over and over yet they wont apply without the pre-qual.

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

daveg38 — Thu, 19 May 2016 09:58:53 GMT

@Scupra, should I put something in there so newcomers can look through Credit Pulls database to gauge C1 approvals close to their scores?

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Scupra — Thu, 19 May 2016 20:39:58 GMT

@daveg38 wrote:
@Scupra, should I put something in there so newcomers can look through Credit Pulls database to gauge C1 approvals close to their scores?

You could do that! Just dont link to the site I just think a lot of people slow their rebuild down by not cold apping. We get so caught up in, "did you have or check the pre qual?"

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

futurehomeowner14 — Wed, 01 Jun 2016 20:36:47 GMT

This just motivated me to email a request for a reconsideration. I burned Cap One for two cards in my BK7 but had to include them of course. I was never late, never missed a payment. My BK7 was discharged on 3/7/16 and it appears I am blacklisted. I check the prequalify and of course no offers. I applied and recieved the 7-10 day message. I will see what response I get from the email request.

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Anonymous — Wed, 15 Jun 2016 15:26:36 GMT

Hi, just curious, did you request a recon or receive a final decision on your request for credit?

Per my attorney, I had to include Cap 1 in my BK filing, but had never missed a payment or exceeded my limit. As a result the account has been closed by the credit grantor and is listed as such on my credit report. I have submitted a request to have it listed as IIB,

topic Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI in Bankruptcy

Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI

Re: Capital One and Bankruptcy 101: How to Save a HP & Some Basic FYI