Closing a credit card is straightforward, but the order matters
Closing a credit card takes one phone call to your card issuer, but doing it the wrong way can hurt your credit score. The damage comes not from closing the card itself, but from what happens to your credit utilization — the percentage of your total credit limit you're using across all cards. When you close a card, you lose that credit limit, which can make your remaining balances look larger by comparison.
The safest approach is to pay down the card's balance first, then close it after confirming the account is at zero. If you have balances on other cards, closing this one will raise your utilization ratio on those cards, which can drop your score by 10 to 50 points depending on how much you owe overall. That drop is temporary — your score recovers as you pay down other balances — but it's real and worth planning around if you're about to explore for a loan or mortgage.
Key Takeaways
- Pay the card's balance to zero before you call to close it, so the issuer has no reason to deny the request.
- Closing a card removes its credit limit from your total available credit, which raises your utilization ratio on remaining cards and can lower your score temporarily.
- The score drop is usually temporary and recovers as you pay down other balances, but avoid closing cards right before explore for a loan.
- After closing, check your credit report in 30 to 60 days to confirm the account shows as closed and has a zero balance.
- If you want to keep the account open without using it, you can ask the issuer to lower the credit limit instead of closing it.
Pay the balance to zero before calling
Start by paying off everything you owe on the card. This is non-negotiable — most issuers will not close an account with an outstanding balance, and if they do, you'll still owe the debt and interest will keep accruing. Paying to zero also means there's no remaining balance to report to the credit bureaus after closure, which keeps your utilization ratio from spiking on that specific card.
If you have a large balance, you can set up a payment plan with the issuer before you close. Call the card's customer service number on the back of your card and ask what your current balance is, then arrange a payment date. Some issuers let you set up automatic payments to reach zero by a specific date. Once the balance hits zero, wait for the payment to post — this usually takes one to three business days — then proceed to the next step.
Call the issuer and request closure in writing
Contact 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 ask why you're closing and may offer you a lower interest rate or other incentives to keep the account open. You can decline or negotiate, but if you've decided to close it, stay firm.
After the call, send a written request to the address the issuer provides. Write a straightforward letter stating your account number, the date you called, the name of the representative you spoke with, and your request to close the account. Keep a copy for your records. Written confirmation creates a paper trail if there's a dispute later about whether the account was actually closed. Mail it certified with return receipt so you have proof of delivery.
Understand how closure 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 you're carrying $3,000 in balances, your utilization is 20 percent. If you close one of the $5,000 cards, your total available credit drops to $10,000, and that same $3,000 balance now represents 30 percent utilization. That shift can lower your score.
The impact depends on how much you're already using. If your utilization is already high (above 30 percent), closing a card will hurt more. If it's low (below 10 percent), the damage is usually minimal. The score drop is temporary — as you pay down balances on your remaining cards, your utilization improves and your score recovers. Most people see their score return to its previous level within three to six months.
Closing an older card also removes its age from your credit history. Credit bureaus factor in the average age of your accounts, so closing a card you've had for years can slightly lower that average. This effect is small and also temporary, but it's worth knowing about if you're trying to maintain a high score.
Wait for confirmation and check your credit report
After you send your written request, the issuer typically takes 7 to 10 business days to process the closure. You'll receive a letter confirming that the account is closed. Keep this letter. Some issuers also send a final statement showing a zero balance and the closure date.
About 30 to 60 days after closure, check your credit report through AnnualCreditReport.com, which is the only free source authorized by federal law. Look for the closed card and verify that it shows a zero balance and a status of "closed by consumer" or "closed at consumer's request." If it shows anything else — like an outstanding balance or "closed by issuer" — contact the issuer when ready to correct it. Errors on your credit report can affect your score and your ability to borrow.
Consider keeping the account open if you don't have to close it
If your only reason for closing is that you don't want to use the card, you have another option: keep the account open but stop using it. This preserves your available credit and the account's age, which protects your score. The card issuer may close it for inactivity after 12 to 24 months of no charges, but you can prevent that by making one small purchase every few months and paying it off when ready.
Close the card only if you have a specific reason: you're paying an annual fee you don't want, the card has a high interest rate you're tempted to use, or you're simplifying your finances and genuinely don't want the account. If the card is free and you're not tempted to carry a balance, leaving it open costs you nothing and protects your credit profile.
What to do if the issuer refuses to close the account
Rarely, an issuer will refuse to close an account, usually because there's an outstanding balance or a pending dispute. If this happens, ask the representative to explain the reason in writing. If there's a balance, pay it and call back. If there's a dispute, resolve it first — the issuer won't close until it's settled.
If the issuer still refuses after you've resolved the issue, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints against banks and credit card companies. Having a record of your closure request and the issuer's refusal strengthens your complaint. In most cases, the issuer will close the account once they receive notice of a CFPB complaint.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Closing a card can lower your score temporarily because it reduces your total available credit, which raises your utilization ratio on remaining cards. The drop is usually 10 to 50 points and recovers within three to six months as you pay down other balances. The impact is smaller if your current utilization is already low.
How long does it take to close a credit card?
The issuer typically processes closure within 7 to 10 business days after you call and send a written request. You'll receive a confirmation letter. The account will show as closed on your credit report 30 to 60 days later.
Should I close old cards or new cards?
Closing an older card has a slightly larger impact on your score because it removes account age from your history. If you must close one, closing a newer card is marginally better. But if the old card is free and you're not using it, keeping it open protects your score more than closing it.
What happens to rewards points when I close a card?
This varies by issuer. Some let you redeem points before closure, some let you redeem after, and some cancel unused points when the account closes. Call your issuer before you close and ask what happens to your rewards balance. Redeem or transfer points before closure if possible.
Can I reopen a closed credit card?
Some issuers will reopen a recently closed account if you ask within a certain window, usually 30 to 60 days. After that, reopening is unlikely. If you think you might want the card back, wait a few weeks before closing, or ask the issuer about their reopening policy before you proceed.