Taking a bank shop for a bank you defaulted on their credit card

I see shops for applying for a credit card at a certain bank. 9 years ago I had to default on two of their credit cards. During that time they did send me 1099's for the defaults. I had to claim them on my taxes. The debt was forgiven and no longer show up on my credit reports. There was no judgement on the cards. Should I still take the shops to apply for a credit card? Are there any risk for me? Could this come back to bite me? My credit score is back into the 700's.

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I am not into doing credit card shops because I value credit card signup bonuses (often worth $500 or more) way more than the price paid by a shop.

If you can spend $3-4k in three months you can do better getting a bonus instead.

If you can sign up for a card that as a bonus AND get paid for it then it could be worth it.

Sorry I don't know about your situation in particular but I'd look for where you can make the most with each bank and I'd probably only poke the bear with this bank if it's definitely worth your while.

Just my $.02.

Edited 1 time(s). Last edit at 10/27/2022 08:00PM by olympia tennenbaum.

I had not thought about the bank bonus for getting the card. Something to look into.

Yeah, when I took my first assignment to open a credit card, I discovered the bank was offering a bonus equal to my fee. The catch was for the assignment I had to open in a branch, for the bonus I had to open online. I did the assignment because I had already committed, but that was the last account opening shop for me.

Another question I would have, if you're denied are you still paid for the shop? It could be a gamble with that bank and could also be uncomfortable if it comes up.

With Ath, you will be paid if you get refused a credit card or are told you only qualify for a secured card. This is for the large red white and blue bank.

Basically your question is whether banks keep a private blacklist file that lasts longer than the credit report listing. And the answer is that yes they can, but it varies by bank.

Chase and Discover are known to be pretty forgiving. Capital One will give you another chance even while it's on your report, because low credit ratings are their bread and butter. Synchrony I think just goes by the credit report. AmEx holds grudges a long time (decades), depending on the amount of the default.

BoA is described here. [milestomemories.com] From one anecdote we don't know if 10 years is the distinction or establishing a bank account with them first. But it looks like they were denied after 9.

@Amarsir wrote:

Basically your question is whether banks keep a private blacklist file that lasts longer than the credit report listing. And the answer is that yes they can, but it varies by bank.

Chase and Discover are known to be pretty forgiving. Capital One will give you another chance even while it's on your report, because low credit ratings are their bread and butter. Synchrony I think just goes by the credit report. AmEx holds grudges a long time (decades), depending on the amount of the default.

BoA is described here. [milestomemories.com] From one anecdote we don't know if 10 years is the distinction or establishing a bank account with them first. But it looks like they were denied after 9.

Thanks for the link on B or A. I heard of a case, where B oa A forgave a couple their credit card debt. They were sent a 1099, meaning they had to pay taxes on the forgiven debt and B of A wrote it off on their taxes. It also mean B of A could no longer sue them for the debt. A while later B of A took the couple to court, trying to sue them for the debt they just forgave. The judge said NO WAY and threw the case out. You cannot sue someone for a debt you just forgave.

Hehe one of my “part-time jobs” if you will is to signed up for credit cards for those bonuses! And bank accounts too! I’ve been saving up all that money for a vacation! I just save the full amount… I know I get the tax forms and don’t actually net the whole amount, but still it’s a way for me to send back some money. Between my sign bonuses and reward points, I am almost $6000 and that “escape” fund. I called up my little schemes and scams. You have to say where you can!

I recently applied for an American Express card.

They said I still owed them about $l,000. They'll happily issue me a new card when I pay that off.

From 1985.

@ceasesmith wrote:

I recently applied for an American Express card.

They said I still owed them about $l,000. They'll happily issue me a new card when I pay that off.

From 1985.

I would tell them forget it.

I closed my Chase credit card around 17 years ago, still owing a balance, which I think I eventually paid off (but it took a long time). I still can't get a new one. They have the Amazon credit card, which I didn't know when I applied for one. Was rejected due to the past issue, although my credit score was somewhere above 700 at that time. So, some credit card companies have very long memories.

I learn something new every day, but not everyday!
I've learned to never trust spell-check or my phone's auto-fill feature.

Edited 1 time(s). Last edit at 11/05/2022 03:59PM by BirdyC.

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Taking a bank shop for a bank you defaulted on their credit card

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