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Unique Scenario for the Credit Experts

fused
Moderator Emeritus

Re: Unique Scenario for the Credit Experts



texican wrote:
From 1984 until 2000 I had a perfect credit file, with over 40 accounts paid-as-agreed on everything from a $1000 VISA, a $75k boat and a couple of houses. When I bought my third home in 1999 I was making 250k annually and my score was over 800. But in 2001 my start-up technology company hit the skids when the tech bubble burst. Venture funding dried up and we suffered a long, slow, painful death that completely wiped me out. Things started out being paid late, then eventually I charged off the several cards in 2001 and 2002 and had to sell the house in 2003. My scores tanked to 500-525. I did not file BK.
 
I managed to find senior level employment again in late 2004 and have slowly built my way back. First I received a $500 First Premier Card, then a Capital One Card at $500, then a couple of HSBC cards, $1000 and $1700 CLs respectively. Using those silly cards I managed to get the scores up to the 625-635 range last fall and then qualified for a $450k mortage (with $250k annual income and no other debts.) But for the most part, we have been cash-and-carry. Our cars were paid for before the bust.
 
Today my scores are TU 649, Exp 647 andEquifax per MyFico is 652.  I ignored the charge-offs, and they are ignoring me. I have a $30k  bank line of credit charge-off, a $12k credit card charge-off and a $10k credit card charge-off, all assigned to collection agencies and reporting as such on the 3 CBs. A few letters from time to time but no calls, no harassment, no judgements, 5+ years later. I haven't applied for anything but the mortgage since 2005 so I only have three inquiries on each CB.  And I have no jugdements.
 
I need to dump the First Premier for sure and maybe even the Capital One. I just want to get my score above 675 so I can at least get in to the B-tier auto financing category.  Of course, I am already planning on $10-15k down on a car, so that's not an issue. Can I qualify for better cards with higher limits in this scenario or are my "past credit card crimes" going to kill me? Do I pay the charge-offs or let them go? 
 


 
Message 11 of 31
ilovepizza
Senior Contributor

Re: Unique Scenario for the Credit Experts

What would happen if the op worked down the amount owed and brought debt to Paid / Satisified?

Would no balance reported on past collections help much?

And then there is alway a PFD?
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Message 12 of 31
Brammy
Moderator Emeritus

Re: Unique Scenario for the Credit Experts



SpecFile wrote:
Not true at all.  I have seen others on this forum with situations similar to yours get the AMEX Delta Gold.  BKs are a no-go for AMEX but Liens and Judgements have not posed a serious threat to applicants of the Delta Gold.  Give it a try!


 
Actually Amex said themselves that BKs are not an automatic no. They only completely blacklist you if you BKd on them. But they are approving with unpaid open collections and chargeoffs?  Thats weird when you still have debt that they can come after you for and its obvious that they are not being paid.
 
Let me know how tht Amex app goes for you if you decide to apply.

Message 13 of 31
SpecFile
Valued Contributor

Re: Unique Scenario for the Credit Experts

My apologies.  I knew that I had read about BKs and AMEX acceptance but wasn't clear on whether the BK could involve an AMEX CC.
Message 14 of 31
Brammy
Moderator Emeritus

Re: Unique Scenario for the Credit Experts



SpecFile wrote:
My apologies.  I knew that I had read about BKs and AMEX acceptance but wasn't clear on whether the BK could involve an AMEX CC.


 
Dont apologize.....  I only know this because I drooled over the Amex for a long time.  Not my go for card anymore.  Now I'd like to know if it pays to discover.Smiley Very Happy So now I'm bugging their CSRs and using up uunnecessary bandwidth on their site.



Message Edited by Brammy on 08-29-2007 06:38 PM
Message 15 of 31
SpecFile
Valued Contributor

Re: Unique Scenario for the Credit Experts

Dont apologize.....  I only know this because I drooled over the Amex for a long time.  Not my go for card anymore.  Now I'd like to know if it pays to discover.Smiley Very Happy So now I'm bugging their CSRs and using up uunnecessary bandwidth on their site.



Message Edited by Brammy on 08-29-2007 06:38 PM

So if you don't have an AMEX account associated with a BK then you might be able to get one of their cards?  I am reading so much on these forums and learning so much that I get ahead of myself sometimes. lol
Message 16 of 31
Brammy
Moderator Emeritus

Re: Unique Scenario for the Credit Experts



SpecFile wrote:
Dont apologize.....  I only know this because I drooled over the Amex for a long time.  Not my go for card anymore.  Now I'd like to know if it pays to discover.Smiley Very Happy So now I'm bugging their CSRs and using up uunnecessary bandwidth on their site.



Message Edited by Brammy on 08-29-2007 06:38 PM

So if you don't have an AMEX account associated with a BK then you might be able to get one of their cards?  I am reading so much on these forums and learning so much that I get ahead of myself sometimes. lol


 
According to the rep.  I was actually declined not because of my BK (at least it didn't say so in the letter) but too many new accounts.

Message 17 of 31
SpecFile
Valued Contributor

Re: Unique Scenario for the Credit Experts

I understand now.  Thanks Brammy.
Message 18 of 31
Brammy
Moderator Emeritus

Re: Unique Scenario for the Credit Experts



SpecFile wrote:
I understand now.  Thanks Brammy.


 
Ok Spec.  As far as BK is concerned you will not get one with a NEW BK.  It must be 7 years old.  Keep thinking about mine which will be on for three more years.  So technically it is 7 yrs old BUT it was Ch7 one of those ten yrs on deals.
 
But hey, who knows with this new credit crunch you may not be able to get Amex if you're cross-eyed soon



Message Edited by Brammy on 08-29-2007 07:00 PM
Message 19 of 31
SpecFile
Valued Contributor

Re: Unique Scenario for the Credit Experts

Well AMEX did ask me if I had an optical deficiency of any sort and I was very slow to answer sooooo.....  I guess I'll read about it in 7-10 days. lmao lmaoSmiley Happy


Message Edited by SpecFile on 08-29-2007 06:32 PM
Message 20 of 31
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