The basic steps to close a credit card
Call the customer service number on the back of your card and tell them you want to close the account. Have your account number ready. The representative will confirm your identity, ask why you're closing it (they may offer retention deals), and process the closure. Some card issuers also let you close an account through their website or mobile app, though a phone call creates a record and gives you a chance to ask about any remaining balance or pending charges.
Before you call, pay off any balance you owe. If you close an account with a balance, you'll still owe the money and interest will keep accruing until it's paid. After closure, you won't be able to use the card, but the account stays on your credit report for up to ten years, which affects your credit score.
Ask the representative to confirm the account is closed and request written confirmation by mail or email. This gives you proof of the closure date if disputes arise later. Check your credit report a few weeks after closure to make sure it shows as closed on your end.
Key Takeaways
- Pay off your full balance before closing, because interest continues to accrue on any remaining debt even after the account is closed.
- Call the number on the back of your card to close it, and ask for written confirmation of the closure date.
- Closing a card lowers your available credit, which can raise your credit utilization ratio and temporarily lower your credit score.
- Closed accounts stay on your credit report for up to ten years, so the damage to your score is not permanent.
- If you have multiple cards, closing older accounts first does more damage to your score than closing newer ones.
Why closing a card affects your credit score
Your credit score depends partly on your credit utilization ratio — the amount of credit you're using divided by the total credit available to you. If you have three cards with $5,000 limits each ($15,000 total) and carry a $3,000 balance, your utilization is 20 percent. Closing one card removes $5,000 from your available credit, raising your utilization to 30 percent even though you haven't charged anything new. Higher utilization hurts your score.
The age of the account also matters. Account history is part of your score, and closing an older card removes years of positive payment history from the calculation. Closing a newer card does less damage than closing one you've had for a decade.
The damage is temporary. As time passes and you build new positive history, the impact shrinks. The closed account itself stays on your report for up to ten years, but its weight in the score calculation decreases over time.
When to close a card and when to keep it open
Close a card if you're paying an annual fee you don't use and the issuer won't waive it, or if you're trying to reduce the temptation to overspend. Close it if the card has a high interest rate and you're not using it anyway. If you have multiple cards and want to simplify your finances, closing newer cards with lower limits does less damage than closing old ones.
Keep a card open if it has no annual fee, even if you don't use it. The available credit helps your utilization ratio, and the account history helps your score. If a card has an annual fee, call and ask the issuer to waive it before you close it — many will, especially if you've been a customer for years or have other accounts with them.
If you're closing a card because you're struggling with debt, focus on paying down balances first. Closing accounts doesn't erase what you owe, and it can actually make your score worse in the short term by raising your utilization ratio on the cards you keep open.
What happens to rewards points and cash back
Check your card's terms before closing. Most issuers let you use rewards points or cash back after the account closes, but some have rules about how long you have to redeem them. A few cards expire rewards immediately upon closure, so redeem everything before you call to close.
If you have a large rewards balance, contact the issuer and ask about your options. Some will let you transfer points to a travel partner or another card you hold with them. Others will let you cash out at a lower rate. Get the answer in writing before you close the account, because you can't negotiate after the account is gone.
Handling a card with a balance
Do not close a card that still has a balance. The account will close, but you'll still owe the full amount plus interest. The issuer will send you bills, and the debt will stay on your credit report. If you stop paying, they can sue you or send the account to a collection agency.
If you can't pay the full balance immediately, keep the card open and make regular payments. Once the balance reaches zero, then close it. If you're struggling to pay multiple cards, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) — they can help you make a plan without charging you.
Closing a card with an authorized user
If someone else is an authorized user on your card, closing the account removes their access immediately. Call the issuer before you close and ask whether the authorized user needs to be notified. Some issuers will contact them; others won't. If the authorized user is a family member or spouse, tell them yourself so there's no confusion.
If you're an authorized user on someone else's card and they close it, the account will fall off your credit report after seven to ten years. Until then, it still shows as closed, which has a small negative effect on your score. You can't prevent this — only the primary cardholder can close the account.
After you close the account
Destroy the physical card by cutting it up or shredding it so it can't be used. Stop using the card number for any recurring charges — update subscriptions, gym memberships, or other services to a different payment method before you close.
Check your credit report two to three weeks after closure to confirm the account shows as closed. You can get a free report once a year from each of the three major bureaus (Equifax, Experian, TransUnion) at annualcreditreport.com. If the account doesn't show as closed after a month, contact the issuer and ask them to verify the closure with the credit bureaus.
Keep the written confirmation of closure for your records. If a debt collector later claims you owe money on a closed account, or if the account reappears on your credit report, you'll have proof of when and how you closed it.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, temporarily. Closing a card raises your credit utilization ratio and removes account history from your score calculation. The damage is usually largest in the first few months after closure, then shrinks over time. Closing an older card hurts more than closing a newer one.
Can I reopen a closed credit card account?
Some issuers will reopen an account within a short window (usually 30 to 90 days) if you call and ask. After that, you'd have to apply for a new card. Reopening doesn't restore the original account history, so it won't undo the score damage from closure.
What if the issuer won't let me close the account?
Card issuers are required to close accounts when you request it. If they refuse or claim they can't, ask to speak to a supervisor and make it clear you want the account closed. If they still refuse, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.
Do I have to pay a fee to close a credit card?
No. Closing an account is free. If an issuer tells you there's a fee to close, that's not legitimate. Hang up and call back, or file a complaint with the CFPB.
What happens to my credit limit if I close a card?
The credit limit disappears — that money is no longer available to you. This lowers your total available credit, which raises your utilization ratio on any remaining cards. That's why closing a card can temporarily lower your score even if you don't carry a balance.