Will Chase Bank love me & approve a card if I want to repay them?

[MountainHiker]

Hello Everyone 

I'm a older forum member but have not posted in many moons. I'm here in need of advice. I once had very good credit and much of that information in building it was learned on these forums, but as many people know, things do happen in life that can be overwhelming.  Pretty sure it's happened to better people than myself. In any case I'm in the rebuilding process of turning my credit status around. In eight months I've gone from having defaulted student loans, and unpaid credit card and car loan. Now my student loans are in positive status and even managed to get the old derogatory reporting student debt off my credit reports. Which btw was not automatic in the least.  A few of the credit bureaus refused to remove them despite the federal government law regarding rehabilitated student debt. My scores have gone from the mid 400s to the 650s currently.  I've added a Capital One Platinum card-$500 and a SavorOne Capital One card-$1000 both AF free and unsecured. And I'm very grateful to have them both.

Before this I've been unworthy of being approved for any type of credit card including secured cards. Considering that history I feel very fortunate. I also have a Macy's card-$1000 and a Bloomingdales card-$3500. My approach to credit is very different.  I don't buy things unless their needed. And I primarily use my two store cards to improve my credit profile. My question is this, if I repay a charged off Chase card in full, would I have a chance of being approved for a Chase card? I want to pay it off because I owe them money.

  I am a little concerned paying that debt before the 7 year mark might restart the clock in reporting of that debt, even if I pay it in full. I really want to get back in with Chase bank.  Sometimes when you mess things up you just want to come back and do things right and makeup for that lapse in judgment.  I owe them about $1900 and want to pay it in full as long as it makes sound financial sense. The debt is about 5 years old, and as I said In charged off status.   In any case thank you for offering your time and advice.  

[firefox100]

Most likly the bank sold your debt, Chase does not own debt they sell it for 5 to 10% on dollar when they charge it off. You could call chase and talk to them. Before I would do any thing it would be good Idea to talk to lawyer.r. good luck.

[JoeRockhead]

If anything, paying the account in full will improve your UTI, stop it reporting as a CO every month and will change to closed/paid so this would be a good thing. As far as the 7 year thing and it falling off your reports, that time line will remain unchanged and will go by the DoFD that led to the CO status. As far as getting back in with Chase, it's not going to be immediate as you are, and will likely remain on their blacklist. For how long you will remain there, I can't say and perhaps other who have dealt with them in this regard will chime in, but getting right with them would be a good first step in that direction.

[Horseshoez]

@MountainHiker congratulations on getting your finances squared away!  A year ago most folks would have told you paying them in full (if possible) will get you in sooner or later, probably later; not paying them would be pretty much a forever blacklist thing.  I burned them for north of ten-grand in my 2015 Chapter 13 and after my bankruptcy fell off my reports in January of last year I checked the Chase preapproval page on several occasions; all I was ever qualified for was a savings account.  This last December (nearly 8 years since I filed) I needed to open up a Chase checking and savings account and while in the process, the associate at the branch asked me if I wanted a credit card; my wife and I do a bit of traveling so I asked for the CSP and was instantly approved for a pretty healthy credit line.

Long story short, it seems Chase is easing up some of their rules on extending credit to folks with less than stellar histories with them, so there is hope.  Please keep us posted on what you do.

[SouthJamaica]

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@MountainHiker wrote:

Hello Everyone 

I'm a older forum member but have not posted in many moons. I'm here in need of advice. I once had very good credit and much of that information in building it was learned on these forums, but as many people know, things do happen in life that can be overwhelming.  Pretty sure it's happened to better people than myself. In any case I'm in the rebuilding process of turning my credit status around. In eight months I've gone from having defaulted student loans, and unpaid credit card and car loan. Now my student loans are in positive status and even managed to get the old derogatory reporting student debt off my credit reports. Which btw was not automatic in the least.  A few of the credit bureaus refused to remove them despite the federal government law regarding rehabilitated student debt. My scores have gone from the mid 400s to the 650s currently.  I've added a Capital One Platinum card-$500 and a SavorOne Capital One card-$1000 both AF free and unsecured. And I'm very grateful to have them both.

Before this I've been unworthy of being approved for any type of credit card including secured cards. Considering that history I feel very fortunate. I also have a Macy's card-$1000 and a Bloomingdales card-$3500. My approach to credit is very different.  I don't buy things unless their needed. And I primarily use my two store cards to improve my credit profile. My question is this, if I repay a charged off Chase card in full, would I have a chance of being approved for a Chase card? I want to pay it off because I owe them money.

  I am a little concerned paying that debt before the 7 year mark might restart the clock in reporting of that debt, even if I pay it in full. I really want to get back in with Chase bank.  Sometimes when you mess things up you just want to come back and do things right and makeup for that lapse in judgment.  I owe them about $1900 and want to pay it in full as long as it makes sound financial sense. The debt is about 5 years old, and as I said In charged off status.   In any case thank you for offering your time and advice.  

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I think it would be a good idea to call them, and arrange to pay it off. It's not going to restart the clock.

[longtimelurker]

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@MountainHiker wrote:

My question is this, if I repay a charged off Chase card in full, would I have a chance of being approved for a Chase card? I want to pay it off because I owe them money.

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The bolded part is generally a personal decision, some feel an obligation to pay off all debts when they eventually can, others....  IMO, this is not quite the same as when you borrowed money from a not-so-rich friend and never paid it off.   JPMC will survive quite well without your $1,900 and, as others have said, it has likely sold it off anyway!  So itwould be a personal choice.

But in your case you have another goal, getting a card.   Paying it off certainly won't help straight away, so ignoring "moral" issues in my first paragraph, the question is whether $1,900 is worth any perceived increase in the chance/speed of getting a Chase card, and then the value of that card.   That in turn depends on how much $1,900 is worth to you.  If it is near pocket change, probably pay it off, if it is significant part of the monthly budget, I wouldn't.

[TheRedHat]

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@MountainHiker wrote:

Hello Everyone 

I'm a older forum member but have not posted in many moons. I'm here in need of advice. I once had very good credit and much of that information in building it was learned on these forums, but as many people know, things do happen in life that can be overwhelming.  Pretty sure it's happened to better people than myself. In any case I'm in the rebuilding process of turning my credit status around. In eight months I've gone from having defaulted student loans, and unpaid credit card and car loan. Now my student loans are in positive status and even managed to get the old derogatory reporting student debt off my credit reports. Which btw was not automatic in the least.  A few of the credit bureaus refused to remove them despite the federal government law regarding rehabilitated student debt. My scores have gone from the mid 400s to the 650s currently.  I've added a Capital One Platinum card-$500 and a SavorOne Capital One card-$1000 both AF free and unsecured. And I'm very grateful to have them both.

Before this I've been unworthy of being approved for any type of credit card including secured cards. Considering that history I feel very fortunate. I also have a Macy's card-$1000 and a Bloomingdales card-$3500. My approach to credit is very different.  I don't buy things unless their needed. And I primarily use my two store cards to improve my credit profile. My question is this, if I repay a charged off Chase card in full, would I have a chance of being approved for a Chase card? I want to pay it off because I owe them money.

  I am a little concerned paying that debt before the 7 year mark might restart the clock in reporting of that debt, even if I pay it in full. I really want to get back in with Chase bank.  Sometimes when you mess things up you just want to come back and do things right and makeup for that lapse in judgment.  I owe them about $1900 and want to pay it in full as long as it makes sound financial sense. The debt is about 5 years old, and as I said In charged off status.   In any case thank you for offering your time and advice.  

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Others have already responded, but I wanted to address this in particular. Please remove these bolded terms from your vocabulary when dealing with finances and rebuilding your credit. It is an algorithm. It's mathematical. Banks determine risks based on numbers and not on a "person's worth." Wishing you the best of success in your rebuilding efforts. 

[MountainHiker]

Thank you for sharing your experience.  Rebuilding a previous comfortable position never is fun, but it certainly does help to receive examples of kindness. Thank you! 

 I had no idea that my debt might have been sold to a third party. For the last few years I've been pretty much off the grid. For that reason there has been nearly zero communication between myself and those previous lenders. My goal is to try and do the right thing and keep everything moving in the right direction.  

[MountainHiker]

Appreciate your input. These forums are so valuable to hear that reasonable voice which can be decisive in helping a situation improve. Kinda like having a spotter in the gym while lifting weights. Just trying to keep the weights from falling on me at this point. 

[MountainHiker]

I must say your post really got me. Not sure if it was your level of kindness or my two glass max of white zinfandel that I was sipping on.  Maybe a combination of both. But thank you for your response and support.

Sharing the details of your journey definitely helps me and others, and gives an insight of what might be required to fix the derogatory items on a credit profile.  So thank you for that. I really want to get back in with Chase and I'm willing to go the extra mile. For  several years I took care of a wonderful elderly parent. For that reason I have been enriched emotionally and and also financially. But for a while everything had to be put last. 

I've even considered putting six figures into a couple CD accounts just to hopefully gain extra internal scoring points that most lenders use in deciding whether to trust a potential card holder. But as we all know,  a practice or business model does not change for one individual.  Some companies are more conservative than others. I've even considered putting six figures into an American Express CD hoping that might gain me some type of extra internal scoring points. And maybe, just maybe American Express would see the paid in full Chase card and start me with their starter card. Not sure if American Express is any more flexible working with credit files with dings.

At the end of the day its important to keep things in perspective.  We're all here breathing living and that's incredibly awesome.  The rest I'm just trying to figure out.  Is the air a little sweeter if we have additional financial maneuverability?  I'm nodding my head yes. I'm here on earth to learn. Moonbase 1 Is above my head literally.