Closing a credit card affects your credit score, but the damage is temporary if you plan ahead
Closing a credit card lowers your credit score because it shrinks the total credit available to you — even if you never use it. The hit is usually 10 to 50 points and fades over time as you build new positive history. The real damage comes from closing the wrong card at the wrong moment, or closing cards in the wrong order. A few specific steps, taken in the right sequence, can cut the damage in half.
The three things that hurt most are closing your oldest card, closing your last card in a particular category (like your only store card), or closing a card while you still carry a balance on other cards. Each one has a workaround.
Key Takeaways
- Closing a card reduces your available credit and typically lowers your score by 10 to 50 points, but the effect shrinks as you build new positive payment history.
- Pay off the card completely before you close it, because carrying a balance while closing other cards makes the score drop worse.
- Close newer cards before older ones — your oldest card history is worth more to your score than your newest.
- Call the card issuer to close the account yourself rather than letting it close automatically, so you have a record and can confirm the account shows as closed at your request.
- Check your credit report two months after closing to confirm the card shows as closed and that the issuer is not reporting a balance you paid off.
Pay off the balance before you call to close
A credit card with a zero balance does less damage to your score when closed than one with a balance. If you close a card while carrying debt on other cards, the math works against you: your total debt stays the same but your available credit shrinks, which raises your debt-to-credit ratio — the percentage of your total credit limit that you are using. A higher ratio hurts your score more than the account closure itself.
Pay the card down to zero before you call the issuer. If you cannot pay it off completely, pay as much as you can, then wait until the next statement closes to see the new balance reported. This takes one billing cycle — usually 20 to 30 days. Only then call to close the account. The issuer will close it with a zero balance on record, which is better for your score than closing it with a balance.
Do not close the card when ready after paying it off. Wait for the next statement to post, showing the zero balance. This gives the credit bureaus time to see the payoff before the account closes.
Close newer cards before older ones
Your credit score rewards you for a long history with credit. The age of your oldest account matters more than the age of your newest one. If you are closing multiple cards, close the newest ones first and keep your oldest card open as long as possible.
If you have five cards and want to close three, close the ones you opened most recently. Your oldest card — the one you opened 15 years ago — should stay open even if you never use it. The length of that history is worth more to your score than the small benefit of having one fewer open account.
The exception is if one of your older cards has an annual fee and you do not use it. In that case, the fee costs you real money every year, and closing it is worth the score hit. But if there is no fee, leave it open.
Call the issuer and request closure in writing
Do not let a card close on its own because you stopped using it. Call the issuer's customer service number on the back of the card and tell them you want to close the account. Ask them to note in your file that you requested the closure. This creates a record that protects you if there is a dispute later about whether the account was closed.
After you hang up, send a follow-up letter or email to the address the issuer gives you. Write: "I am requesting that you close account [your card number] at my request, effective when ready. Please confirm closure in writing and send me documentation showing the account is closed." Keep a copy for your records.
Some issuers will ask why you are closing the account or offer you a lower interest rate to stay. You do not have to explain your reason. A straightforward "I have decided to close this account" is enough. If they offer a rate reduction and you want to keep the card, take it — but only if you actually plan to use it.
What happens to your credit report after closure
After you close the account, the issuer reports it to the three credit bureaus — Equifax, Experian, and TransUnion. The account will show as "closed" on your credit report, but it stays on your report for seven to ten years. This is actually good: the account history remains visible, which helps your score over time.
Your score will drop when ready after closure because your available credit shrinks. The drop is usually largest in the first month and then shrinks each month as you build new positive history. If you make on-time payments on your other cards, the damage fades quickly — often within three to six months.
Check your credit report two months after closing to make sure the account shows as closed and that no balance is being reported. You can get a free report from each bureau once per year at annualcreditreport.com. If the issuer is reporting a balance you paid off, contact them when ready to correct it.
Keep the card open if you do not have to close it
The easiest way to avoid a score drop is to not close the card at all. If there is no annual fee, there is no cost to leaving it open. Use it once or twice a year for a small purchase you would make anyway — a tank of gas, a coffee — and pay it off when ready. This keeps the account active and the history building.
An open card with a zero balance actually helps your score because it counts as available credit you are not using. The older the card, the more it helps. Your first credit card, even if you never touch it, is worth keeping open for this reason alone.
Close the card only if it has an annual fee, if the issuer is treating you poorly, or if you are trying to simplify your financial life and the score hit is worth it to you. For most people, the math favors keeping old cards open.
The order to close multiple cards
If you are closing more than one card, the order matters. Close them one at a time, not all at once, and space them out by at least one or two months. This spreads the score damage across multiple billing cycles instead of taking one large hit.
Close in this order: newest card first, then work backward in time. Skip any card that is your oldest in its category — for example, if you have three store cards and one is your oldest, close the other two first. If one card has an annual fee and another does not, close the one with the fee first.
After you close each card, wait two months before closing the next one. This gives your score time to recover slightly before the next hit. By the time you close your third or fourth card, the first one is already helping your score again.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, but usually by 10 to 50 points, and the damage fades within three to six months if you make on-time payments on your other cards. The hit is temporary. Closing a very old card or closing multiple cards at once causes a larger drop than closing a newer card.
Should I close a card with a zero balance or pay it off first?
Pay it off first and wait for the next statement to post showing the zero balance. Then close it. This ensures the issuer reports the closure with a zero balance, which is better for your score than closing a card with a balance on it.
What if the card issuer will not let me close the account?
Issuers are required to close accounts when you request it. If they refuse or claim they cannot, ask to speak to a supervisor and repeat your request in writing. Document the date and time of your call. If they still refuse, file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov.
Can I reopen a closed credit card?
Sometimes, but it depends on the issuer and how long ago you closed it. Call the issuer and ask. If they reopen it, the account history usually remains on your credit report, which is good. But do not count on reopening as a backup plan — close only cards you are sure you want closed.
Does closing a card remove it from my credit report?
No. A closed account stays on your credit report for seven to ten years. This is actually helpful because the account history continues to build your credit age and payment history, even after closure.