@ThomasJNewton wrote:My friend with the medical collections issue with Experian (he asked to have a medical collections that is the result of a dispute between the provider and the insurance company removed and was told it could not be done until June 30th), received a pre-approval offer from Capital One for QuickSilver, Savor card and/or Venture Rewards cards. His Equifax FICO 8 score is 780-something, while his TU Vantage from Credit Karma is 714 (has not changed in a long time) and his Experian FICO 8 is 653 (probably because of the account in collections). He has one visa with a 25K line that he has had for over 7 years and is an AU on a master card with a $7k line. Both report $0, and is 0/24 for inquires.
He asked me if he was better off waiting until the medical collections come of his report before accepting their offer, or if it does not matter since he was already pre-approved.
I know he would like to get either a Saphire (Preferred or Reserve) or a Venture X eventually, as he is likely to start traveling for work again this year. I suggested that he not open a Chase checking account (to be able to pre-qualify) until the medical debt was gone from his record, but was not sure if there were any other issues on the Capital One application.
What do people think?
you should absolutely wait because Cap1 decides they're in the recent delinquency bucket and you get at best a 3k SL or denied outright
Cap1 might look past it and approve based on the pre-approval offer, but it's not worth the potential growth of the account and throwing away of 0/24 to wait a few months for clean reports
if OP's friend is in the right, why not file a dispute to get the collection removed?
@ThomasJNewton wrote:
@GZG wrote:you should absolutely wait because Cap1 decides they're in the recent delinquency bucket and you get at best a 3k SL or denied outright
That was what I suggested, but I was curious why they pre-approved him with this on his record (it has been there for a while - more than two years).
Cap1 might look past it and approve based on the pre-approval offer, but it's not worth the potential growth of the account and throwing away of 0/24 to wait a few months for clean reports
I figured that he should wait (one article says it should come off at the end of March, the Experian rep said the end of June), since he is not desperate for more credit, just wanted to improve his profile a bit.
if OP's friend is in the right, why not file a dispute to get the collection removed?
He has disputed it - that is why it is not on either of his other two. Experian just keeps marking that that it was reconfirmed.
Cap1 will "pre-approve" anybody with a pulse for ultimate approvals from $300 to $30000
the difference in approvals between the two profiles with the collection and without the collection is probably thousands of dollars. The collection profile probably gets 1-3k and never gets any higher than ~5k.
the clean profile can get upwards of 10k, up to 30k on venture X to start
How they will treat you varies vastly different based on your credit profile when you apply, so it's 100% worth waiting.
If he has a case, a consumer debt attorney will gladly take it at no cost to you to get it removed
@ThomasJNewton wrote:My friend just found out that Experian removed the medical collections account they had reported. His question is how long does he have to wait to make it most likely that CapitalOne will re-pull his credit before he applies? Given that he now has 3 clean profiles, he wants to make sure he does not apply too soon, while they still have the old report in their system.
creditors don't (or they're not supposed to) use old pulls to make credit determinations
If he applies with three clean profiles (I would run the pre-approval tool again to confirm if they will likely get a SUB or not), they will make their determination on the three clean profiles.
Does your friend have a Cap1 card now? If so they go by older SP's. Wait it out a bit. Vantage is not used by Cap1.
