Applying at Chase with Previous Default

[Bickz]

I have an old debt with Chase I defaulted on well over 12 years ago, with no activity on the account since. I have went through the complete DV process with the collection agency trying to collect the debt (they were unable to verify) and haven't heard from them or Chase since -- at least 3 to 4 years now.

 

My question is, if I were to apply for a retailer branded credit card backed/managed by Chase, and by some miracle was approved... is there *any* chance whatsoever that Chase could add the previous debt's balance onto the new account?

 

Thanks.

[Clydesmom]

My question is, if I were to apply for a retailer branded credit card backed/managed by Chase, and by some miracle was approved... is there *any* chance whatsoever that Chase could add the previous debt's balance onto the new account?

 

Thanks.

 

YES. Typically what they do is deny credit until you clear up past balances. Although some people have reported that they are granted new credit with a previously defaulted creditor to find the old debt on the new account.

 

The difference for you is that you are speaking of a retailer account. Is the debt with the same retailer? If so then the "yes" applies. However, if you had a different Chase product than the retailer the more likely decision would be a denial due to a negative past relationship.

[cv91915]

I have gotten cards with three creditors that I've burned in the past (Citi, Discover, Capital One) and none of them has added my previous defaulted (OLD) balance to my new card.

 

The closest thing I have heard recently is Barclays, who will grant you a card but then presents to you the old accounts that went bad every time you log in to view the balance on your current card. It doesn't add those balances to your new account, nor does it try anything but good old fashioned shame to remind you.

 

I have heard of some scummy CAs who will issue you a new card under the guise of giving you credit to help rebuild, and then when the card arrives it has that old balance on it, however I would be that there is language in the disclosure somewhere (which no one reads) that is agreed to before this happens.

 

Clydesmom, if you have had any personal experience to the contrary I will stand corrected (at least partially... it's still never happened to me!).

[SouthernTreat]

I have heard of some scummy CAs who will issue you a new card under the guise of giving you credit to help rebuild, and then when the card arrives it has that old balance on it, however I would be that there is language in the disclosure somewhere (which no one reads) that is agreed to before this happens.

 

I have never heard of a CA that is also a card issuer. Do they partner up with another company that does issue credit cards?

[cv91915]

 

I have heard of some scummy CAs who will issue you a new card under the guise of giving you credit to help rebuild, and then when the card arrives it has that old balance on it, however I would be that there is language in the disclosure somewhere (which no one reads) that is agreed to before this happens.

 

I have never heard of a CA that is also a card issuer. Do they partner up with another company that does issue credit cards?

There is one that is discussed periodically on this board. I'm sure someone with a better memory will name it.

[jak2136]

Credit One/LVNV/Sherman Groups

[cv91915]

Credit One/LVNV/Sherman Groups

DING DING DING!

 

Thanks, jak2136!

[Clydesmom]

I have gotten cards with three creditors that I've burned in the past (Citi, Discover, Capital One) and none of them has added my previous defaulted (OLD) balance to my new card.

 

The closest thing I have heard recently is Barclays, who will grant you a card but then presents to you the old accounts that went bad every time you log in to view the balance on your current card. It doesn't add those balances to your new account, nor does it try anything but good old fashioned shame to remind you.

 

I have heard of some scummy CAs who will issue you a new card under the guise of giving you credit to help rebuild, and then when the card arrives it has that old balance on it, however I would be that there is language in the disclosure somewhere (which no one reads) that is agreed to before this happens.

 

Clydesmom, if you have had any personal experience to the contrary I will stand corrected (at least partially... it's still never happened to me!).

 

In the pre-computer/digital era defaulting was easier but now that accounts can be kept indefinitely not so much. It did not happen to me but to my sister. She had a CC with a major bank and defaulted. 8 years later when she applied for a new card they approved it and through the right of set off attached the old debt. She paid it.

 

It may not happen often but it does happen. I hear about it more frequently with service accounts though. I have seen a few posts from people who applied for utilities or cell phone service to be told they had to satisfy an old balance before a new account would be opened.

[cv91915]

 

I have gotten cards with three creditors that I've burned in the past (Citi, Discover, Capital One) and none of them has added my previous defaulted (OLD) balance to my new card.

 

The closest thing I have heard recently is Barclays, who will grant you a card but then presents to you the old accounts that went bad every time you log in to view the balance on your current card. It doesn't add those balances to your new account, nor does it try anything but good old fashioned shame to remind you.

 

I have heard of some scummy CAs who will issue you a new card under the guise of giving you credit to help rebuild, and then when the card arrives it has that old balance on it, however I would be that there is language in the disclosure somewhere (which no one reads) that is agreed to before this happens.

 

Clydesmom, if you have had any personal experience to the contrary I will stand corrected (at least partially... it's still never happened to me!).

 

In the pre-computer/digital era defaulting was easier but now that accounts can be kept indefinitely not so much. It did not happen to me but to my sister. She had a CC with a major bank and defaulted. 8 years later when she applied for a new card they approved it and through the right of set off attached the old debt. She paid it.

 

It may not happen often but it does happen. I hear about it more frequently with service accounts though. I have seen a few posts from people who applied for utilities or cell phone service to be told they had to satisfy an old balance before a new account would be opened.

I would think that the right of set off would be in the disclosures, right (incidentally, this is why I closed my savings account at Cap One Bank... an older charge off for which I didn't still have the disclosures).

 

I have definitely heard of the latter scenario, where you are required to pay an old bill before you can a new account with the same creditor (often utilities/similar, as you mention), however that is different from what OP asked.

 

Thanks for the clarifications...

[dvd]

I dont think they can approve you for an account then automatically add the previous defalt balance to the new account.

[markca]

About 10 years ago I had a card with Chase go to collections. I tried earlier this year to apply for a Chase Amazon Visa and got denied solely for the reason that I had the past account with Chase.

[HoldenMcGroin]

I actually have a current account with Chase (with a very low limit, but the rewards had made it worth keeping) but when I applied to get a Chase Freedom, I got denied due to past delinquency. The account was 10 years ago and it wasn't even Chase at the time, It was a First USA account, which was later bought out by Chase. It kind of sucks that they are stil using it against me. I am about to close my card with them because it is a BP visa and they majorly diluted the rewards program last year. It's too bad that I'll probably never be able to take advantage of their good cards.

 

I tried to pay the account off afterward but it was already charged off and I didn't realize that they wouldn't update my credit report every time I made a payment so I quit paying. I am pretty sure that they amount I paid actually exceeded the amount that I charged, but the amount was really bloated due to fees.

[Bickz]

Thanks for your responses everyone.

[eatcookies]

 

I have heard of some scummy CAs who will issue you a new card under the guise of giving you credit to help rebuild, and then when the card arrives it has that old balance on it, however I would be that there is language in the disclosure somewhere (which no one reads) that is agreed to before this happens.

Ugh, that happened to me about ten years ago. Totally fell for it, twice. My husband almost fell for it, and Portfolio Recovery is trying to get me on a 16year old CO.

[Keirin]

This is my current dilemma. I had a previous charge off from Chase about 10 years ago. I've also been a cardholder on my mother's Chase account for over 7 years (that appears as great credit on my report). She plans to close that account and I want to open a Chase account of my own because I'll only have one other source of credit. Debating whether I want to risk it.

[EternalDebtSlayer]

OP,

 

In 2008 I had a CC that was CO with Chase for $6000+. I never paid it but Chase still financed my car in 2011. I haven't tried to get a CC with them, but you could give it a shot to see what happens.