Welcome to the forum, Renzo -
I completely understand your frustration, but is your disappointment in Disco truly warranted in this scenario? They paid $300 towards your debt with them(!)? I've never heard of a cc company doing such a thing - that's pretty great of them. They also didn't close your account / send it to collections, they only suspended it?; meaning, when the time comes, spending privileges can be reinstated and you keep the age of your account -- that's also pretty great. From their perspective, an open 7K debt between two other banks is a pretty huge risk - so it makes sense that they won't reinstate your account at this time. They likely wouldn't approve someone for a new card if they have two open collections with fairly high balances owed. I get that the agreement was to reinstate after your Disco debt was paid in full -- but I'm sure those terms included a clause with regards to meeting lending requirements as well.
Have you tried negotiating a lesser settelment amount with the Chase & Cap One collection agencies? Many times, even if the account is settled, you can negotiate to have it reported as 'paid in full' instead of 'settled for less'. Hang in there and see the bright side -- Disco will be there waiting when you get your debts squared away and that will be a huge help in your credit rebuild. Best of luck to you.
Tending my Garden til 2/2021
Unfortunately, this is how it is with credit. Everything is becoming automated. Previously, you would have been able to speak to an analyst to plead your case, but those days are disappearing fast. In addition, those that fulfill their credit obligations are treated worse than someone who wrote off all their debt. I've been rebuilding for over 2 years, slowly chipping away at my collections. As you can see in my sig, companies are willing to give me a chance, but the cards don't grow. Had I filed bankruptcy 4 years ago, I would no doubt, have scores in the 700s and 5 figure credit limits. Based on what I've seen, I'd have higher limits than what I have now, in less than a year, while a couple of my cards below are at 4 year marks. It isn't fair. At this point, I owe so little that it isn't worth filing. Just have to pay it off and wait it out for another 3 years. At least I can feel good about taking care of what I had promised to do in the first place.