Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
JustAUsername

2 Contributions
0 People Helped
question on old debt past statue of limitations & pre approvals with same bank
Hello. I keep getting pre approvals from capital one for a card. 10 years ago I had a capital one card and charged $200 on it and ended up owing them close to $800 due to over the limit fees late fees and interest. Today I am much more responsible then when I was 18 or 19. To get to the point, both the statue of limitations has passed per Illinois law to collect on the old debt and it has also fell off my credit report. If I accept this pre approval offer can capital one harass me about the old debt and/or charge the old debt to the new card and/or add it back on to my credit report? I am trying to open another account or two to increase the number of accounts to help my score a bit more. Any help is appreciated.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
179 Contributions
334 People Helped
Most Helpful Response

Capital 1 is experienced in sub-prime

Helpful to 8 out of 9 people

If your card was really charged off and already fell off your credit report as an old debt, Capital One will give you a new card without thinking about that old one.  And if a collection company contacts you about the old debt, just advise them that you will not respond to old debts, and ask them to cease and desist in writing; ultimately they can’t do anything to you. 

Capital One is actually a spin-off of a company called Signet Banking Corporation (originally called the Morris Plan Bank of Richmond, Virginia) and were one of the first 'sub-prime' lending companies ever.  The company originated in 1922, with a new way of lending to less than qualified people.  Originally founded by Arthur J. Morris, Morris Plan banks filled a growing niche in the communities of the early 1900s, providing loans to individuals who were generally unable to secure funds elsewhere. It was said that any consumer who could offer two cosigners or collateral and was of "good character" qualified for a Morris Plan loan.

I tell you this because you need to understand that the company has almost 100 years of experience in high risk lending.  It's the basis of their culture.  They lend to a TON of high risk credit lines in hopes that the losses will be outmatched by the ones that don’t default and actually pay off.  They pretty much have it down to a science in that time.  So wasting time, effort, and money to capture a portion of old debts is something they generally don’t practice.  If your balance was charged off, they will generally just move on.  And since their business model demands that they create more and more positive accounts to outmatch the bad ones, they will even extend a new chance at credit with you again.  So I say go for it.

Reply by
JustAUsername

2 Contributions
0 People Helped

Sorry for the late reply but thanks for the help.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.