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Credit Card shut down :(

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Super Contributor

Re: Credit Card shut down :(

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.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 11 of 21
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Regular Contributor

Re: Credit Card shut down :(


@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”.

 

https://ficoforums.myfico.com/t5/General-Credit-Topics/Utilization-Balance-on-Closed-Account/m-p/517...

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-does-a-closed-account-with-a-balance...

Amex BCE $15k | Amex ED $15k | Amex BBP $9k | Amex Gold NPSL | US Bank Cash+ $8.5k | Golden 1 CU $10k | Lowe’s $10k | Cap1 QS $10.5k
Message 12 of 21
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Frequent Contributor

Re: Credit Card shut down :(

You don’t need Chase.

Give your business to the creditors that stuck with you through the hard times!
Message 13 of 21
Highlighted
Regular Contributor

Re: Credit Card shut down :(

I ‘second’ what LittleSal said...don’t need Chase...MANY better alternatives out there.  Local CUs are a great starting point..you will be very happily surprised at what you can get as a replacement.

TU:801 / EQ:771 / EX:785 as of 12/8/19
Message 14 of 21
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Senior Contributor

Re: Credit Card shut down :(

The same thing happened to a friend of mine a few years ago. He continued to pay down his account and when it was close to zero he requested they reopen the account and they did.

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Platinum
Barclays: Arrival+ WEMC
Capital One: Savor WMC, Venture VS
Chase: Freedom U VS, CSR VI
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity VS
Credit Union: Rewards Visa
FICO 08: (2.4.20) EX: 832 / EQ: 840 / TU: 833
Message 15 of 21
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Super Contributor

Re: Credit Card shut down :(


@Real_Name 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”.

 

https://ficoforums.myfico.com/t5/General-Credit-Topics/Utilization-Balance-on-Closed-Account/m-p/517...

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-does-a-closed-account-with-a-balance...


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.  

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 16 of 21
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Community Leader
Super Contributor

Re: Credit Card shut down :(

@tcm75     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  Smiley Very Happy



Message 17 of 21
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Regular Contributor

Re: Credit Card shut down :(


@NRB525 wrote:

@Real_Name 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”.

 

https://ficoforums.myfico.com/t5/General-Credit-Topics/Utilization-Balance-on-Closed-Account/m-p/517...

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-does-a-closed-account-with-a-balance...


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.

Amex BCE $15k | Amex ED $15k | Amex BBP $9k | Amex Gold NPSL | US Bank Cash+ $8.5k | Golden 1 CU $10k | Lowe’s $10k | Cap1 QS $10.5k
Message 18 of 21
Highlighted
Super Contributor

Re: Credit Card shut down :(


@Real_Name wrote:

@NRB525 wrote:

@Real_Name 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”.

 

https://ficoforums.myfico.com/t5/General-Credit-Topics/Utilization-Balance-on-Closed-Account/m-p/517...

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-does-a-closed-account-with-a-balance...


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.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 19 of 21
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Community Leader
Valued Contributor

Re: Credit Card shut down :(

Sorry this happened to you. Chase feels like people need to “earn” their services lol. You serve them, not the other way around. Kidding of course, but still....

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Once you go Berner, you never go back.
Message 20 of 21
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