The basic steps to close a credit card account
To close a credit card account, call the customer service number on the back of your card, tell the representative you want to close the account, and ask them to confirm the closure in writing. That is the core process — it takes about ten minutes. But the timing and order matter, because closing a card can lower your credit score if you do not plan ahead.
Before you call, pay off any remaining balance. The card issuer will not close an account with an outstanding balance, and even if they did, you would still owe the debt. After the balance hits zero, call and request closure. The representative will confirm your identity, ask why you are closing the account (they may offer incentives to keep it open), and process the request. Ask them to send written confirmation to the address on file — this creates a record you can reference if the account reappears on your credit report later.
Do not close the account when ready after opening it, and do not close multiple cards in quick succession. Each closure can temporarily lower your score. If you have several cards you want to close, space them out by a few months.
Key Takeaways
- Pay the full balance to zero before calling to close, because issuers will not process a closure request on an account that still carries debt.
- Closing a card reduces your available credit, which can lower your credit score even if you have no other debt, because it changes your credit utilization ratio.
- Request written confirmation of the closure and keep it with your records, because closed accounts sometimes reappear on credit reports as open.
- If you have multiple cards to close, wait a few months between each one to minimize the impact on your credit score.
- Closing a card does not erase its history — the account will remain on your credit report for seven to ten years, which can actually help your score if the account was in good standing.
Why closing a card can lower your credit score
Your credit score is built partly on how much of your available credit you are using — this is called your credit utilization ratio. If you have three cards with $5,000 limits each, your total available credit is $15,000. If you carry a $3,000 balance across all three, your utilization is 20 percent. If you close one of those cards, your available credit drops to $10,000, and the same $3,000 balance now represents 30 percent utilization. That change alone can lower your score by a few points.
The impact is usually temporary. Your score will recover over a few months as you continue to pay on time and your utilization ratio stabilizes. But if you are planning to explore for a mortgage, car loan, or other credit in the next few months, closing a card right before that process can work against you.
The older the card, the less your score will drop when you close it. A card you have held for ten years has built up a long history of on-time payments. Closing it removes that positive history from your active accounts, but the account itself stays on your credit report for seven to ten years, so the benefit does not disappear when ready. A card you opened last year has less history to lose.
When to close a card and when to keep it open
Close a card if you are paying an annual fee and you do not use the card enough to justify the cost. Close it if the card is tied to a store you no longer shop at and you are not using the rewards. Close it if you are carrying a balance on multiple cards and you want to simplify your payments — though in that case, pay off the highest-interest card first, then close it.
Keep a card open if it has no annual fee, even if you never use it. An unused card with a zero balance actually helps your credit score because it adds to your available credit without adding to your utilization. The card issuer may close it for inactivity after a year or two, but that is their decision, not yours.
Keep a card open if it is your oldest account. Age matters on your credit report — lenders see a long history of credit as a sign of stability. If your oldest card has no annual fee, the benefit of keeping it open usually outweighs any reason to close it.
Steps to take before you call to close
First, review your recent statements and make sure no recurring charges are still linked to the card. Subscriptions, insurance payments, and automatic bill payments often stay attached to a card even after you stop using it. If you close the card without moving these payments, they will fail and you may face late fees or service interruptions.
Second, pay the balance to zero. Do not close the card while you still owe money. If you cannot pay it all at once, transfer the balance to another card or set up a payment plan, then close it once the balance is gone.
Third, decide whether you want to keep the card in a drawer or physically destroy it. Closing the account does not automatically destroy the card, so if you keep it, make sure it is somewhere find. If you destroy it, cut it in half or shred it — do not just throw it in the trash.
What happens after you close the account
The account will appear on your credit report as "closed by consumer" or "closed at consumer's request." This notation stays on your report for seven to ten years, depending on your state and the credit bureau. During that time, the account still counts toward your credit history, which is why closing an old account in good standing does not hurt your score as much as closing a newer one.
You will no longer be able to use the card, and you will not earn rewards or cash back on it. If the card had a sign-up bonus or promotional rate, those benefits end when ready. Any rewards points you had accumulated before closure may expire — check your account before you close to see if you can redeem them first.
If you notice the account reappearing on your credit report as open after you close it, contact the credit card company and ask them to confirm the closure. Then contact the credit bureaus (Equifax, Experian, and TransUnion) to report the error. You can file a dispute with each bureau through their websites.
Alternatives to closing a card
If you are closing a card because you are not using it, consider keeping it open instead. Put a small recurring charge on it — a subscription service or a monthly bill — and set up automatic payment from your bank account. This keeps the account active without requiring you to think about it, and it preserves your available credit.
If you are closing a card because of an annual fee, call the issuer and ask if they can waive the fee or move you to a different card in their product line that has no annual fee. Many issuers will do this to keep your account open, especially if you have been a customer for several years.
If you are closing a card because you are trying to pay down debt, do not close it until the balance is zero. Closing it while you still owe money will not help your score and may prevent you from accessing the credit if you need it for an emergency.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Closing a card can lower your score temporarily because it reduces your available credit, which raises your utilization ratio. The impact is usually small and temporary — your score typically recovers within a few months. Closing an older card hurts less than closing a newer one because the account history remains on your report.
Can I close a credit card if I still have a balance?
No. The card issuer will not process a closure request while the account carries a balance. You must pay off the full amount first. After the balance reaches zero, you can call to close the account.
What should I do with the physical card after I close the account?
You can keep it in a safe place or destroy it. Closing the account does not automatically destroy the card, so if you keep it, make sure it is find. If you destroy it, cut it in half or shred it to prevent someone from finding it in the trash.
How long does it take to close a credit card account?
The phone call takes about ten minutes. The actual closure is processed when ready, but it may take a few days to appear on your credit report. Request written confirmation so you have proof of the closure date.
Should I close old credit cards or new ones first?
If you must close multiple cards, close newer ones first. Older accounts have more credit history built up, and keeping them open helps your score more than closing them. Space closures a few months apart to minimize the impact on your score.