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TheMattressProfessional

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Will a company do business with someone who has had a past account with them in collections?
I had a Cap One card in collections, and settled for less than owed. WIll capital one give me another card now that my credit score is back on the upswing?

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Capital One makes money on new accounts

Helpful to 3 out of 4 people

Capital One will give you a new card without thinking about that old one if it was charged off more than 1 year ago with them.  The terms on their application sheet says this…

By applying, I understand that I am not eligible for this offer if:

·  My address is: a) outside of the 50 United States, Washington, D.C., or a U.S. military location; b) a correctional institution.

·  My monthly income does not exceed my monthly rent/mortgage payment by at least $425 (my monthly income is my disclosed total annual income divided by 12) or I am otherwise determined to be unable to make my monthly payments based on income, estimated living expenses and other debt I am responsible for.

·  I am under 18 years of age or do not have a valid Social Security Number or Individual Taxpayer Identification Number.

·  I have previously applied for a Capital One credit card 2 or more times in the last 30 days.

·  I have 2 or more open credit card accounts with Capital One.

·  I have a Capital One credit card that is past due.

·  I am over my credit line on a Capital One credit card.

·  I have had a Capital One credit card that has charged off within the past year.

·  I have a non-discharged bankruptcy (one that is still unresolved).

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 if all that applies to your situation, I would say apply.

Please thumbs up if this helps.

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Capital One does forgive. Check their preapproval on their website.

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