Do creditors give you a second chance after you have burned them previously?

[reneasworld]

Ten years ago, I became ill and ended up being unemployed. There were four credit card companies that I was not able to pay the balance and they became default and ultimate were collections. Since it has been well over ten years they are off my credit but when I have applied I receive a message regarding previous accounts. The creditors are Amex which I only had a $2,000 line, Barclays $1,800, Chase and Kay's Jewelery (well I never reapplied but I am listing them for reference). I was wondering do they have programs where they will not be tacking thousands of dollars for repayment so that you may get another opportunity to receive credit from them again. 

[Anonymous]

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@reneasworld wrote:

Ten years ago, I became ill and ended up being unemployed. There were four credit card companies that I was not able to pay the balance and they became default and ultimate were collections. Since it has been well over ten years they are off my credit but when I have applied I receive a message regarding previous accounts. The creditors are Amex which I only had a $2,000 line, Barclays $1,800, Chase and Kay's Jewelery (well I never reapplied but I am listing them for reference). I was wondering do they have programs where they will not be tacking thousands of dollars for repayment so that you may get another opportunity to receive credit from them again. 

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They legally CANNOT collect on the money, due to both the Statute of Limitations (varies depending on state of residence, but anywhere from 3 to 8 years) and the companies having sold off the debt to collections agencies.

Some companies won't give you another card for quite some time (my experience is that AMEX locked me out for longer than 15 but less than 25 years), but most will let you back in eventually. If they give you a new account, you've pretty much have nothing to worry about.

[Anonymous]

I don't know for sure, but I would imagine most card-issuing banks keep internal records of customers that have defaulted on loans or credit in the past. To gain their business back, you may need to start off with a secured card with them to prove you can handle the credit. After a year or two with that, you would likely have a much better chance of getting approved for a card with better benefits.

[reneasworld]

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@Anonymous wrote:

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@reneasworld wrote:

Ten years ago, I became ill and ended up being unemployed. There were four credit card companies that I was not able to pay the balance and they became default and ultimate were collections. Since it has been well over ten years they are off my credit but when I have applied I receive a message regarding previous accounts. The creditors are Amex which I only had a $2,000 line, Barclays $1,800, Chase and Kay's Jewelery (well I never reapplied but I am listing them for reference). I was wondering do they have programs where they will not be tacking thousands of dollars for repayment so that you may get another opportunity to receive credit from them again. 

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They legally CANNOT collect on the money, due to both the Statute of Limitations (varies depending on state of residence, but anywhere from 3 to 8 years) and the companies having sold off the debt to collections agencies.

Some companies won't give you another card for quite some time (my experience is that locked me out for longer than 15 but less than 25 years), but most will let you back in eventually. If they give you a new account, you've pretty much have nothing to worry about.

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Some company keeps emailing me about one of the old debts. I was like stop emailing me. They don't call, they just email me. I can't remember the name of the company but there is a disclaimer saying some debts may be too old to be collectd in court or something like that. 

[myjourney]

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@reneasworld wrote:

Ten years ago, I became ill and ended up being unemployed. There were four credit card companies that I was not able to pay the balance and they became default and ultimate were collections. Since it has been well over ten years they are off my credit but when I have applied I receive a message regarding previous accounts. The creditors are

Amex which I only had a $2,000 line, The best way to know with this lender is if no HP blacklisted ......could be years until forgiven if ever

and they don't care what the amount was just that it wasn't repaid 

Barclays $1,800, Can be forgiving but you'll spend a HP every time you try to see

Chase The worst of all of them.

I was once asked about a Chase account from 20 years ago and it was from another bank acquired by Chase not even a real Chase account

Chase bought them out years after that account was closed... Yet it's in their computers 

All data is feed into their computers and viewable to all UW's

They have a hell of a hard drive that's for sure ....Lol

Amex and Chase are running neck in neck tho. Both have the longest memory next to an elephant 

and Kay's Jewelery (well I never reapplied but I am listing them for reference). I was wondering do they have programs where they will not be tacking thousands of dollars for repayment so that you may get another opportunity to receive credit from them again. Not sure sorry 

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The most forgiving lender out there is by far Cap1

[UncleB]

Here's my personal experience:

• Amex was IIBK back in 2000.  I got two cards with them back in 4/2015, but they definitely remember me from before (when I log in, it greets me as "Member Since 1995").  I've tried multiple times to get CLIs on my BCP, and each time I'm denied due to "...previous negative experience on an American Express account.".  Since it looks like I'm stuck at my current $1k credit line on this card, in a month or so I'm going to try to get another revolver, to use as a 'donor' in 13 months.  FWIW, I never tried to get back in with Amex before last April, since I assumed I would be automatically declined. (It's possible I could have been approved earlier.)

• I applied for Barclays last summer; was summarily declined with no HP.  I got a letter referring to a previous account that was charged off... the account they are referring to was an old Juniper Bank MasterCard that was CO right around the time the were changing over to Barclays (just my luck).  I assume I'll be on their blacklist indefinitely, although I'm thankful for no HP.

• I've not yet applied for anything with Chase, but during the same period my Juniper was being charged-off, I had a Wamu card being charged off as well.  Of course as luck would have it, Wamu cards were taken over by Chase, so I have no idea if I'm blacklisted or not.  I did start getting pre-qual offers in the mail and online last year, before the 5/24 rule went into effect.  I never tried to apply for anything to see what would happen.

I would simply add that if there's a card you want, the only way to really know is to apply for it.  Just as I was utterly shocked to be approved for Amex again, you might find yourself pleasantly surprised as well! 

Also, if you're interested in paying Amex back (if you are on their blacklist) do a search on the Oasis program.  There are folks here who have benefited from it.

[Anonymous]

UncleB,

Since you burned Amex 16 years ago, and I burned them 34 years ago and I'm getting CLI's that means you probably only need to wait another 18 years. 

[Anonymous]

I burned Chase, Discover, Citi, and Amex back in 2009. I recently paid my entire AMEX balance and in return am pre-approved for an Optima as part of their rebuilder program. I can app for another product in a year. I'm back in with Discover via a secured card which will hopefully graduate in a year. I app'd with Citi and Chase and was declined for both but none of the reasons were "past history". It was more my current reports which are still a year away from being clear of negatives.

[UncleB]

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@Anonymous wrote:

UncleB,

Since you burned Amex 16 years ago, and I burned them 34 years ago and I'm getting CLI's that means you probably only need to wait another 18 years. 

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LOL...

[reneasworld]

Thanks guys! Great information!