Who is more conservative American Express or Chase?

[MountainHiker]

Hi Everyone 

Thank goodness for this forum because it's a great place to learn and grow. Have a couple questions if you don't mind.

I have two unpaid charge offs on my credit file. I'm in the process of deciding if paying them off now or 24 months later would be the best course of action.

I have a $1900 Chase card and a $20K Honda car loan. Both are 5 years old closed and charged off. I owe the money so I definitely want to pay them back. More than likely a lump sum payoff. My question is this,  would American Express approve me with a entry level charge or credit card with two older daddies on my credit report.  Ordinarily I wouldn't ask this question. 

But just recently I went on the American Express website and attempted a pre-approval for their green card. I was denied but....only because my fico score was too low was the response.  Current score is in the 650s. But I've heard that a 680 might be that threshold for approval.

  What's your opinion on my odds? Have you seen people with older baddies get approved for a entry card?

If so which cards do I have the best chance of getting with a 680 ish score? 

Obviously I burnt Chase and I will pay them back. Do you believe Chase or American Express is tougher to get approved for a entry card with older unpaid charge offs on my credit file? Based on the information from this forum it's more than likely I'm on the blacklist with Chase. 

Thank you so much for taking the time to read my post. It really does matter. 

[wasCB14]

Chase normally has a long memory.

But your signature shows a Chase Freedom Visa. Is that the charged-off card in question? Or it's an AU card?

[GZG]

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@MountainHiker wrote:

I have two unpaid charge offs on my credit file. I'm in the process of deciding if paying them off now or 24 months later would be the best course of action.

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 How recent are these COs? 

How comfortable (financially) are you settling these balances to $0 right now? You sound like you can pay/settle them to $0 balance, comfortably. Do so. 

I would not expect to get any meaningful credit products with unpaid CO's and any credit you do get will be limited or subprime in some way

When the CO's stop updating, and you allow time to past after settling all of your bad debt in full, you will be able to get back to getting good credit products again, perhaps even Amex.

The reason you were given from Amex is just a random one out of a hat. Your profile with a 680 score if/when your score rises to 680 without paying off the debt will probably just spit back out unpaid debt as the denial reason when you go to apply again.

[805orbust]

Agreed on all counts. There is no limit to the memory of Chase, however,  when I was rebuilding, Amex let me back in with a 665, and I had burned them back in the 80's. I had negative items on my reports still, but nothing unpaid. Agree with @GZG that you should make those creditors whole.

[MountainHiker]

Thanks cb14.

Yes that Chase Freedom card in my signature is the account in question.  I have not been on this website in over 10 years. Those three cards were in my wallet when last on this website.  I actually did not notice that previous signature.  Will update it soon. Funny how just seeing that makes me a little sad. But upward and onwards.  

[805orbust]

You got this @MountainHiker .

Oh, and the simple answer to your question is Chase... they are quite a bit more conservative all things considered.  😉

[wasCB14]

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@MountainHiker wrote:

Thanks cb14.

Yes that Chase Freedom card in my signature is the account in question.  I have not been on this website in over 10 years. Those three cards were in my wallet when last on this website.  I actually did not notice that previous signature.  Will update it soon. Funny how just seeing that makes me a little sad. But upward and onwards.  

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Got it.

I'd say Chase would be harder than Amex in this case...not that Amex would be easy. Both have long memories.

What in particular is the appeal of these two lenders vs. one more open to rebuilders? Is there a specific card you hope to eventually get?

[MountainHiker]

Hi GZG

My two unpaid closed charge offs are 5 years old. I have a Capital One Platinum card-$500, Capital One SavorOne rewards care $1000, Macys Card $1000, Bloomingdale card $3500. And my student loans afe all positively reporting.  My oldest accounts are 12 years old and my average age of accounts is 9 years old.

I want to call them up, pay them off in full and move forward. 

I've been informed on this forum that contacting them, and paying off the debt will not restart the dreaded 7 year reporting clock. And as long as that's the case, it's time to turn a negative past into a positive future.  I really appreciate your advice on how to approach American Express. I wasn't sure if American Express would be scared off seeing older unpaid charged offs on my credit file.

Like you mentioned the subprime companies don't seem to be fazed by baddies on my file at all. They have been chasing after me like I'm the last drink of water in the middle of a hot desert.

It definitely makes sense to try and start a relationship with American Express as clean as possible.  Will start the process next week.  Once that is concluded then maybe what I'll do next, is go after an American Express CD.

I don't know if American Express is anything like other lending institutions that use internal scoring points to determine the strength of a potential candidate, but if so maybe having a saving certificate might make a difference.  

I know Penfed and Navy Federal do use internal scoring systems.  

To your knowledge does American Express or Chase bank use internal scoring systems? 

My awesome family members have offered to add me as a authorized user on their American Express and Chase cards. But getting in on my own profile feels right. 

Again thank you, and any additional advice you can offer is much appreciated.  

[MountainHiker]

Thank you 805

That input gives me added information to help my decision making.  

[MountainHiker]

CB14

Why those two lenders vs easier options?

To be honest it seems that the card companies that offer the best rewards in combination with service tend to be providers in the higher end list. Chase, Citibank, American Express,  Bank of America.  Although I will say the Capital One SavorOne rewards card and the Venture cards do appear to be a higher end option among the subprime companies.  In fact I plan to keep the SavorOne card no matter what. 

Another reason is ease of use while traveling internationally.  That is a major factor for me.