I got a letter yesterday from Capital One. They are one of my chargeoffs listed on my reports. Anyway, I have been working with them to pay down my 1700 dollar chargeoff balance since July. Anyway, the letter they sent me offered me a new unsecured credit card with a 2000 dollar limit, my old card was only 500 dollars, as soon as I finish paying down the old debt. I was very happy about that and the guy that calls me every month to set up an autopayment said yep that is what they will do when I am done paying this debt off. So anyway, I will probably get about 700 back from state taxes do to renter's property tax return so I am planning on using that to pay most of the capital one remaining balance then over the next 2 months pay it completely down to get my new card. So my question is, do they do this often? Why are they willing to offer me a new card if I screwed up so bad the first time with them. I am just surprised that's all since some of you have been saying if you burned them in the past don't bother applying. I didn't even apply, they offered so I am still in shock. thanks, melissa
RE: Does Capital One do this o Just curious.....how will this plan affect your credit rating on your reports with them? Will they change the status of the account from a charge off to paying as agreed, never late, etc.?
RE: Does Capital One do this o I am not sure about the rating. I will ask him that next month when he calls me to set up the next autopayment with me. I hope it changes it, that would be great.
RE: Does Capital One do this o It is only a year old. I defaulted last January and the guy kept my information for me instead of sending it to collections and then I finally actually spoke to him last July and have been working with him since. They have offered me several settlements for like 600 dollars but I never had an extra 600 lying around but then I wouldn't be able to get the new card but if I pay if off then they give me the new 2000 dollar line of credit. It is strange but I am thankful. I hope it does change the status of the card but it will still probably show 90 and 120 day lates in the past record.
RE: Does Capital One do this o If you have one of the sub prime, high-interest cards, the charges can add up fast! For example, continuing interest, late charges, and over-the-limit fees. Melissa, the next time the rep calls to do a phone payment, ask about getting the interest rate lowered. Otherwise, your balance is just gonna keep increasing.
RE: Does Capital One do this o He told me that if I made my payments that I have been making more than 10% of the balance then he could lower the interest in the card. He says I am currently paying 60 dollars a month in interest. I don't have late fees or over the limit fees added on anymore. That stopped when the card was charged off. Yep, you guessed it, I had been charged over 1200 dollars in late fees and over the limit fees and interest before they charged the card off. I had been called by them a billion times when I was delinquent and told them that I was out of work due to a medical emergency and well they weren't as forgiving as Citibank whom I had insured. But now they are willing to give me another card when I am finished paying them off this time and I won't let what happened in the past ever happen again. I have learned my lesson big time.
This is what Cap 1 did w/ me. I had a Cap 1 card ~ I don't even remember the original limit. Anyway ~ I defaulted with them and left it alone, my charges were $1300 total that I owed them. They gave me a new card and transferred the old balance to the new card $600 limit, anything over went to a special transfer balance. Each month i'd make a payment 50% went to regular credit limit 50% to the special transfer balance. If I paid $300, $150 went to regular balance and that portion was available credit. The interest rate was 9.9% or something like that at the time. Anyway, after 6 mos, no lates, no overlimits they deducted 10% of my balance for being a good customer, part of the agreement. After they deducted the 10% I paid the balance off. A couple of months later they dropped my interest rate to 2.9% and it's been there since then. My limit is only $600 and no chance of an increase with this rehabilitated card. Also, even though my limit is only $600, $1300 shows as my high balace so it looks like my limit is twice as high as it really is, which helps with the debt to available credit percentage. As for the old account it's a paid charge off.
RE: Does Capital One do this o Melissa, $60 a month in interest! Wow! That's outrageous! I don't understand why the rep won't lower the interest rate while you're paying down the balance. You've already suffered enough and Cap One has made plenty of money off the account. Anyway, I'm glad the late fees and over limit fees have stopped. And don't be too hard on yourself. We've all made mistakes. Believe me! I've made my share! The best thing we can do is learn from them, rectify things as best we can and go on. Just keep paying each month and the balance will get smaller. Donna
RE: Does Capital One do this o Thanks Donna, I am planning, provided a decent state tax refund to pay over 1/2 the remaining balance in February. Then over the next two months to pay the remaining 1/2 of it to get my new card and start fresh I love this board. I really have learned a lot. I am going to start disputing some old collection accounts as soon as we get settled in Kansas City and I get a new address. I wish this bb was around when I was in college and had a bunch of other credit cards now closed that I wish I could get back.
RE: This is what Cap 1 did w/ wow Kim, I wish they would do that for me but I have to pay the balance completely down and then I get my new card. Yours sounds like a total deal. Darn, I guess I will have to wait the full 7 years before the chargeoff disappears on the CR. But doesn't it look better if creditor's see you have another card with them now even after the charge off. I would think that would give you bonus points.
RE: Does Capital One do this o I draw 2 conclusions: 1. Looks like Capital One treats its delinquent card holders better than those who pay on time. None of my on-time payments allowed me to get their 9.9% rate, or even unsecure my card. 2. As for Melissa - check what they intend to report. If they leave the charge-off and the R9 mark on your report, all they did was tell you a little story to make you pay a debt that would otherwise be left unpaid. Saar
RE: This is what Cap 1 did w/ I doubt that it gives me any bonus points ~ I wished. I'm just not going to worry about the charge offs on my report. At least any that i have are paid and I don't have a balance hanging over my head.
Generous 42% APR Please be aware that $60 per month in interest on a $1700 balance works out to an APR of a little over 42%. That same interest on the original $500 balance works out to an APR of 144%. Plus, you're paying an extra $1200 in fees. This is a high price, but I'm happy to see you turning this chargeoff into a positive experience.
RE: Generous 42% APR wow, really, he told me it was at 25.9% currently. Of course, I didn't even think to do the math. Ugh, that is horrendous. Oh well, like I said, I really plan on paying it completely off in 3 more months.
RE: Does Capital One do this o How True! Thank god I am through with them. -Alwilda Smith Saar wrote: ------------------------------- I draw 2 conclusions: 1. Looks like Capital One treats its delinquent card holders better than those who pay on time.
RE: Generous 42% APR The 60 dollars could include some kind of fee in addition to interest. In that case, the APR would be less than 42%. I wouldn't be surprised if they suspended the late fees, etc., but then imposed some sort of collection fee. That could bring your total to $60 per month, even with a 26% APR. Or, if you check your statements (they do send you statements, don't they?) you could find less than $60 per month being charged in fees and interest combined. I think it's great that you have a plan to pay it all off as soon as possible. After that, you have a lot more of what they call...financial freedom!!!
RE: Does Capital One do this o If amex offered to let me 'rehabiliate' my charged off student card, I would jump on the opportunity. If the second card charges off (for whatever reason), you'll probablly have *two* capital one charge offs on your report. Just something to think about. I think it's nice that a company is rewarding good behaviour. It's sad that paying off a charged-off debt doesn't help any.
RE: Does Capital One do this o Truth be told, you'd be better off settling (settled or paid charge off looks about the same on a credit report - both are VERY BAD). The interest you are paying is USURY. To be a "CHARGE-OFF" (charged off as a bad debt against P&L) the bank must have WRITTEN OFF the balance as a "NON-PERFORMING" asset. In layman's terms- that means NOT EARNING INTEREST. Belive me, what you're paying is I--N--T--E--R--E--S--T! This is a load of CRAP. You've paid (or are paying) the original balance several times over. That's just downright IMMORAL. Please, call them and make sure that BEFORE YOU SEND THEM YOUR NEXT PAYMENT that you get in writing that they will DELETE the original account from your report when they issue you your new account. If you've paid that much money and still get an R9 for 7 years, you've been screwed. This stuff makes me ANGRY. Yes, you goofed by letting it go, but now you're getting MAJORLY SHAFTED and PENALIZED for not only paying the original balance, but TREBLE the amount in interest. Bad capital one...
