Question Regarding Chase Blacklisting

[Anonymous]

Hi everyone,

I have been a long time lurker (about a year now) and I would like to thank everyone on this forum for the advice you all give, as it has helped me tremendously in the rebuilding process. So, a huge THANK YOU!

A little about my credit history. I had a number of baddies fall of my report in the last 6 months. After those fell off I had a credit score of 659.  At this point I have only one baddie, a medical bill of $900 that is paid. I am an authorized user on my fiancé's BOA credit card with a CL of $1000. That card has is about 2 years old. Just three months ago I was approved for a Discover IT Chrome for students (I'm in graduate school). I was given a SL of $500.  My utlization is 10%. I pay down the card before the statement cutoff date and always PIF. Since getting the discover card my credit score is now 679. So it went up 20 points in about 3 months. I looking to garden the Discover card for a year (hopefully getting a couple of credit limit increase during this time). 

I'm thinking ahead to my app spree that I would like to perform in about 9 months. I would like to apply for the Chase Freedom but I own chase $150 dollars from a overdrawn bank account I had with them many moons ago. So many moons, that it is no longer being recorded in Chexsystems. I obtained my Chexsystems report about 6months ago and it wasn't listed. Since then I was also able to open a checking account with BOA. 

My question is: Will the $150 I owe chase from the overdrawn bank account prevent me from being approved for the Chase Freedom? I understand from the reading that I do on this forum, Chase has a long memory. However, most of the previous posts that I have seen regarding Chase blacklisting, have more to do with burning them with previous credit cards. I've read that the banking and credit card departments are separate. Is this true? If so, it gives me some hope that I will be approved when I apply. I have no issue with paying the $150 but I know that paying it off will not nessesarily increase my chances of approval. Anyone have any input on this?  Thanks in advance!

[Anonymous]

The credit scores I reported are from the Transunion FICO Score via my Discover statement. And I believe I posted this in the wrong spot. Mods, feel free to correct this error. 

[Anonymous]

Chase has a long memory, but that can be overcome with time. However, I think that at this point the combination of your limited credit history and the bad account would result in a denial.

[ddemari]

I can't give you advice in regards to bank account charge off but chase has long long memory of burned accounts.
If you get your utilization down to 2% and apply and don't app for anything between now and 9 months. You would have a great chance at recon. Chase told me on Recon before they let me back in they see the 3 cards I burned them on in 2003 but that wasn't holding them back from approving me it was utilization on 1 card was too high. So I optimized my reports for a while and applies for freedom with 1% utilzation and so began my second romance with Chase.

[ojefferyo]

I would check the prequal once your scores are closer to 700, I know Chase keeps records for eons and even though you didn't burn them on the CC side they still took a loss. In my eyes a loss is a loss. 

[Anonymous]

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@Anonymous wrote:

Chase has a long memory, but that can be overcome with time. However, I think that at this point the combination of your limited credit history and the bad account would result in a denial.

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Yeah, I know I'm lacking credit history which is why my plan was to apply for the Freedom once I have a year of history with my Discover card. My baddie is relativily recent, too. By the time I do have a year of credit history my baddie will be about 2.5 years old. So, it is pulling my score down and does concern me a bit when applying for with Chase. However, I figured that my previous overdraft with them would have more weight in my approval/denial.

[Anonymous]

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@ddemari wrote:
I can't give you advice in regards to bank account charge off but chase has long long memory of burned accounts.
If you get your utilization down to 2% and apply and don't app for anything between now and 9 months. You would have a great chance at recon. Chase told me on Recon before they let me back in they see the 3 cards I burned them on in 2003 but that wasn't holding them back from approving me it was utilization on 1 card was too high. So I optimized my reports for a while and applies for freedom with 1% utilzation and so began my second romance with Chase.

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At this point due to the low credit limit on the card, lowing my utilization to 2% will be pretty difficult. That would mean that I would only be able to charge $20 a month on the card. I guess I should really work on getting that credit limit increase. I was told by a Discover rep that I would have to have 3 statements cut before I was eligible for one. That for me will be that the end of this month. How long did you have to maintain your utlization at 1%? Could it be the month before applying or does it have to be a more signifcant time? like, say 5 or 6 months?

[ojefferyo]

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@Anonymous wrote:

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@ddemari wrote:
I can't give you advice in regards to bank account charge off but chase has long long memory of burned accounts.
If you get your utilization down to 2% and apply and don't app for anything between now and 9 months. You would have a great chance at recon. Chase told me on Recon before they let me back in they see the 3 cards I burned them on in 2003 but that wasn't holding them back from approving me it was utilization on 1 card was too high. So I optimized my reports for a while and applies for freedom with 1% utilzation and so began my second romance with Chase.

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At this point due to the low credit limit on the card, lowing my utilization to 2% will be pretty difficult. That would mean that I would only be able to charge $20 a month on the card. I guess I should really work on getting that credit limit increase. I was told by a Discover rep that I would have to have 3 statements cut before I was eligible for one. That for me will be that the end of this month. How long did you have to maintain your utlization at 1%? Could it be the month before applying or does it have to be a more signifcant time? like, say 5 or 6 months?

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You can always pay as you charge. 

[dragontears]

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@Anonymous wrote:

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@ddemari wrote:
I can't give you advice in regards to bank account charge off but chase has long long memory of burned accounts.
If you get your utilization down to 2% and apply and don't app for anything between now and 9 months. You would have a great chance at recon. Chase told me on Recon before they let me back in they see the 3 cards I burned them on in 2003 but that wasn't holding them back from approving me it was utilization on 1 card was too high. So I optimized my reports for a while and applies for freedom with 1% utilzation and so began my second romance with Chase.

---

At this point due to the low credit limit on the card, lowing my utilization to 2% will be pretty difficult. That would mean that I would only be able to charge $20 a month on the card. I guess I should really work on getting that credit limit increase. I was told by a Discover rep that I would have to have 3 statements cut before I was eligible for one. That for me will be that the end of this month. How long did you have to maintain your utlization at 1%? Could it be the month before applying or does it have to be a more signifcant time? like, say 5 or 6 months?

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In the eyes of FICO scoring utilization has no memory so you only need to adjust your utilization for the month you will be applying. Trying to constantly keep the "perfect" reporting utilization can be a real headache and is not for eveyone.

Even though currently I have only 1 card reporting it is because I just finished a refi on my house, normally I just let my normal balances report and not stress over the 5-10 points it costs me.