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DoctorC

Apply for business credit card and secured cards for same delinquent card issuers

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   My friend, who has owned 2 mobile home parks for 17 years, had no issues with his personal credit ever until 2014 when he went delinquent on 2 Discover accounts, a Citi Cards account and a Chase account.  These credit card accounts were all personal as he never borrowed under his business credit which only has a few business accounts which he established over those 17 years.  He is trying to refinance his mobile home park loan with a credit union at a lower rate and better terms, as the bank he is with now doesn't want to change the terms in any way, shape or form.  The credit union seemed to be interested in doing the loan as the LTV is 40%.  They asked for a letter of credit explanation for why he has unpaid negative accounts not being addressed which with interest and fees tacked on totals around $35K.  The Iowa statute of limitations on these credit card accounts will be 5 years in September 2019 so he doesn't want to negotiate until he gets more leverage at that time.  He is hoping he doesn't have to wait another year or so to negotiate those negative accounts.  These negative accounts are all still with the original lenders and no collectors are involved.

   The letter of explanation was a good one and showed his sincerity with wanting to get past this hiccup and grow and build his business and stressed that he would address the personal credit issues later but that it shouldn't affect his business credit which is thin but has no negatives.  He has updated information on his DNB and has a Tax ID #.  This letter to the credit union was sent off 6 weeks ago and they won't return his calls, although they said they should be able to do something.  I suggested that since he hasn't gotten a no yet to just leave it in the credit unions hands and even if he wasn't ready to negotiate that maybe he could re-establish credit with the card holders that went delinquent by applying for secured credit cards which Discover IT and Citi Cards both have available on the personal credit side.  Chase has no such secured credit card as they deal with good credit only as their business model and would shoot down any applications for personal credit cards.  However, they have 2 business credit cards with no annual fees. However, the application for Chase asks for both business and personal information which of course includes a request for his SS#.  I myself have Discover It and would be willing to allow him authorization to use my credit to help his credit,  so at least 1 account will have reestablished credit with a delinquent account on the personal side. 

   He is also going to apply for the BOA Business Card which has no AF and doesn't ask for ss# and Capital One secured personal credit card, where he has a Capital One car loan with good payment history on his personal credit.  If we can get some of the above approved he can start showing payment history on personal and business credit reports within 90 days.  At that time he can reapproach the credit union to show how serious he is in reestablishing a relationship with at least some of the delinquent accounts.      

           

    My questions to this forum would be:

      1)  Will Citi & Discover IT be willing to approve a secured card when he currently is delinquent accounts with them?

      2)  Would Chase accept an application for a business credit card using only his Tax ID # if he simply left off the SS # on his application, so they are looking at just his good monthly income, time owning business and Paydex? 

Edited by DoctorC

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