Sorry to hear this happened OP, but if you are really at the Acceptance stage, do just that, accept the reality, and continue on.
A closed account does not automatically mean high utilization. If the card is really at high utilization, yeah, sure, but “100% utilization” is not a default report for a closed card. Pay it down according to terms, in balance with the rest of your debts.
Chase closed a number of my cards, related to high balances. I ended up with two active cards, but after balances came down and scores improved I have gotten a number of new cards the last several years. Just keep up your payments and pay things down.
On the bright side, once you get through this you will be eligible for a new card SUB to get a United card again.
A closed account does not automatically mean high utilization. If the card is really at high utilization, yeah, sure, but “100% utilization” is not a default report for a closed card. Pay it down according to terms, in balance with the rest of your debts.
Chase closed a number of my cards, related to high balances. I ended up with two active cards, but after balances came down and scores improved I have gotten a number of new cards the last several years. Just keep up your payments and pay things down.
On the bright side, once you get through this you will be eligible for a new card SUB to get a United card again.
@Anonymous wrote:
@NRB525 wrote:
A closed account does not automatically mean high utilization. If the card is really at high utilization, yeah, sure, but “100% utilization” is not a default report for a closed card. Pay it down according to terms, in balance with the rest of your debts.Ok, well there seems to be some confusion about this, it very much does apply to some FICO versions and has very damaging effects. Another brilliant FICO “feature”.
Do you have a closed card with a low balance still owing so you can provide some data? Most of the people spreading the rumors don’t actually experience this situation.
I have been working on several closed cards with balances, including one still open, $500 owed, $5,000 limit. I carry this because it has a 1.99% Forever BT rate. I provided a series of data points to a thread in the Understanding FICO Scoring forum late in 2018, into early 2019. This included taking several open cards to high utilization, and an open $500 limit card to 90% utilization, and then back to low utilization to show that those were the actions changing scores. If the closed card were treated as “maxed out” it would have preempted those other score hits and not allowed scores to recover. My mortgage and auto scores are very high as well.
A truly maxed out card, open or closed will indeed affect score, but a low utilization closed card is not a drag on scores any more than an open card of the same utilization.
@Anonymous Long time ago i had a chase acct with perfect history and they shut me off. There are plenty of other lenders thankfully.
Never/24 club 
@Anonymous wrote:
@NRB525 wrote:
@Anonymous wrote:
@NRB525 wrote:
A closed account does not automatically mean high utilization. If the card is really at high utilization, yeah, sure, but “100% utilization” is not a default report for a closed card. Pay it down according to terms, in balance with the rest of your debts.Ok, well there seems to be some confusion about this, it very much does apply to some FICO versions and has very damaging effects. Another brilliant FICO “feature”.
Do you have a closed card with a low balance still owing so you can provide some data? Most of the people spreading the rumors don’t actually experience this situation.
I have been working on several closed cards with balances, including one still open, $500 owed, $5,000 limit. I carry this because it has a 1.99% Forever BT rate. I provided a series of data points to a thread in the Understanding FICO Scoring forum late in 2018, into early 2019. This included taking several open cards to high utilization, and an open $500 limit card to 90% utilization, and then back to low utilization to show that those were the actions changing scores. If the closed card were treated as “maxed out” it would have preempted those other score hits and not allowed scores to recover. My mortgage and auto scores are very high as well.
A truly maxed out card, open or closed will indeed affect score, but a low utilization closed card is not a drag on scores any more than an open card of the same utilization.
I’m really not arguing with you, just stating that according to other well respected members herethis is happening / has happened. Until there is definitive proof that this is not the case in any FICO version at any time, I feel it would be remiss not to warn a poster of at least the possibility of this event and the damaging repercussions. FICO already uses every opportunity possible to drop scores, so if this info can help someone who is already struggling that is my goal.
It's a scare tactic, and it makes people do irrational things with their accounts, instead of thinking through what is really the best path forward in troubling situations. I've been through a lot of those; balance chasing, closing of accounts, closing of accounts with balances. I shake my head at how others who get a CLD or closed card are quick to panic, think of it as a near-death experience, and many of the reasons are commenters who don't understand this closed card non-issue and treat it as a near-death experience. It is not anything of the sort.
So I call out the truth, in the hopes of allowing people in these troubling situations to be able to think clearly about all their options.
