I have a charge off from Radio Shack from back in 1996 for $1024. I got an offer from Capital One (they bought the account) for a credit card with a $500 limit and 9.9%APR till 2002. They add the $524 extra to a special purchase segment that does not get overlimit fees. They also offer 3.9% APR after your first payment, after 6 months 10% balance forgiveness and after 1 year a "gold" card. Should I take it or let sleeping dogs lie. The SOL has expired for MD and I think the only reason they are offering this is because they have no other way to collect. Opinions??? P.S. They apply payments to the special purchase section last so you can spend on it right away.
RE: Charged Off Account Opinio Bart-- I think the answer depends on how badly you want a credit card (or this one)and how your credit looks in other respects. This is a very expensive deal. The debt is no longer collectibe. Obviously, Cap1 wants to recoup some of its loss despite the SOL. But you might turn this into something good for yourself. Is this derogatory on your reports? If you don't know you should find out. If this is the only one I would insist that Cap.1 delete it as part of the bargain. I see no reason that they would refuse this request but get it in writing. When this derogatory comes off the report you will move toward prime credit very quickly assuming there are no other problems. Reject the deal if you have other charge-offs, late pays, collection accounts, judgments or liens so that it doesn't matter if it is removed. In that case, try to build credit with other banks while patiently waiting to let the bad stuff expire. Even before that, with the passage of time, the negatives will lose their impact as you build solid credit starting now. PS: The Cap.1 gold card aka iron pyrite card has a credit limit that starts at $200 and maxes out at $2K. Many people on this board have complained about the low limits on these cards and some think the credit limit increases come too slowly.
RE: Charged Off Account Opinio Dave, Thanks for the answer. Here is what is REALLY funny. I already have 2 accounts with CAP1, 1 with Providian, FNB of Brookings, and Chevron Credit Builder. There are many bad things on my report that are 4-5 years old so I think I will just ignore their offer. One thing to note, I got a similiar offer from them 2 months ago but this one is a better deal, maybe if I wait they will give me money =)
