Closing a credit card is straightforward, but the timing and method matter for your credit score
To close a credit card, call the number on the back of your card, confirm you want to close the account, and ask the issuer to send written confirmation. Most issuers will process the closure when ready, though some require you to pay any remaining balance first. The real decision is when to close it — closing the wrong card at the wrong time can lower your credit score by 10 to 50 points, even if you pay on time.
The damage comes from two things: your credit utilization ratio (how much of your available credit you use) and the age of your accounts. Closing a card shrinks your available credit, which makes your other balances look larger by comparison. Closing an old card removes years of payment history. Both hurt your score, but the first effect is temporary and the second is permanent.
Key Takeaways
- Call the card issuer's customer service line, state you want to close the account, and request written confirmation by mail or email.
- Pay off any remaining balance before closing, or the account will stay open until the balance reaches zero.
- Closing a card lowers your available credit, which can raise your credit utilization ratio and temporarily lower your score.
- Closing an old card removes payment history from your credit report, which can lower your score for years.
- If you want to keep the account open without using it, ask the issuer to convert it to a no-annual-fee card instead.
The step-by-step process to close your account
Start by calling the customer service number on the back of your card. Have your account number and Social Security number ready. Tell the representative you want to close the account. They will ask why — you can answer honestly or decline to say. The reason does not affect whether they close it.
If you have a balance, the issuer will tell you the amount owed. Pay it before the account closes, or the account will remain open until the balance is paid off. Some issuers allow you to make the payment over the phone during the same call; others require you to pay separately. Ask which applies to you.
After you confirm the closure, ask the representative to send you written confirmation by mail or email. This confirmation shows the account was closed at your request, which matters if a dispute arises later. Keep this document for your records.
Check your credit report 30 to 60 days later to confirm the account shows as "closed by consumer" rather than "closed by issuer" (which can signal financial trouble). You can view your credit report free once per year at annualcreditreport.com.
Why closing a card affects your credit score
Your credit score depends on five factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). Closing a card touches three of these.
Credit utilization is the percentage of your available credit you are currently using. If you have two cards with $5,000 limits each ($10,000 total) and a $2,000 balance, your utilization is 20%. If you close one card, your available credit drops to $5,000, and your utilization jumps to 40% — even though you owe the same amount. Credit bureaus see higher utilization as higher risk, so your score drops. This effect is temporary: once you pay down the balance or open a new card, utilization improves and your score recovers.
Length of credit history is the average age of your accounts. Closing an old card removes years from that average. If your oldest card is 15 years old and you close it, that 15-year history disappears from your active accounts. The closed account stays on your report for up to 10 years, but it no longer counts toward your average age of accounts. This effect is permanent and can lower your score for years.
Credit mix is the variety of credit types you hold — credit cards, auto loans, mortgages, and so on. Closing a card does not change your mix unless it is your only card, but it does reduce the total number of accounts, which can have a small negative effect.
When to close a card and when to keep it open
Close a card if it has an annual fee you do not want to pay and the issuer will not waive it. Call and ask first — many issuers will remove the fee to keep you as a customer. If they refuse and you do not use the card, closing it makes sense.
Close a card if you are carrying a balance on it and the interest rate is high. Paying it off first, then closing it, removes the temptation to use it again. This is especially true for cards you opened during a period of overspending.
Keep a card open if it is old, has no annual fee, and you do not use it. The age of the account helps your credit score, and an unused card with a zero balance does not hurt you. Set a small recurring charge on it (like a streaming service) and pay it off automatically each month. This keeps the account active without requiring you to think about it.
Keep a card open if closing it would raise your credit utilization significantly. If closing a card would push your utilization above 30%, wait until you pay down other balances first. The temporary score drop from closing is usually smaller if you close after your utilization is already low.
Converting a card to a no-fee version instead of closing it
If a card has an annual fee but you want to keep the account for its age or rewards, call the issuer and ask if they offer a no-annual-fee version of the same card. Many do. The issuer can convert your account to the fee-free version without closing it or opening a new account.
This approach preserves the account's age and history while removing the fee. You keep the same account number and the same credit history. The only downside is that you may lose rewards benefits — the no-fee version often earns no cash back or points. Ask the representative what you will keep and what you will lose before agreeing to the conversion.
If the issuer does not offer a no-fee version, ask if they will waive the annual fee as a courtesy. Many will, especially if you have been a customer for years or have a high income. It costs them nothing to waive the fee and costs you nothing to ask.
What happens to your balance and rewards after closure
If you close a card with a balance, the account stays open until the balance is paid off. You will continue to receive statements and pay interest on the remaining amount. The issuer will not close the account until the balance reaches zero.
Any rewards points or cash back you have earned before closure usually remain in your account for a set period — often 30 to 90 days. Check your card's terms or ask the representative how long you have to use them. Some issuers let you redeem points after closure; others require you to redeem before the account closes.
If you have pending rewards that expire after closure, redeem them before you close the account. Once the account is closed, you may lose the ability to access them.
How closing a card shows up on your credit report
After you close a card, it will appear on your credit report with a status of "closed by consumer" (if you initiated the closure) or "closed by issuer" (if the issuer closed it). Closed accounts stay on your report for up to 10 years, even after closure.
The closed account continues to show your payment history during the time it was open. This is why closing an old card with a long history of on-time payments is less damaging than closing a newer card — the history remains visible to future lenders, even though the account is no longer active.
If you see an account marked "closed by issuer" that you did not close, contact the issuer to find out why. Sometimes issuers close accounts due to inactivity, missed payments, or fraud. If you did not authorize the closure, you may be able to dispute it or reopen the account.
Frequently Asked Questions
Does closing a credit card hurt my credit score?
Yes, but usually temporarily. Closing a card lowers your available credit, which raises your utilization ratio and can drop your score by 10 to 50 points. This effect fades as you pay down other balances. However, closing an old card removes payment history, which can lower your score for years. The older the card, the bigger the long-term impact.
Can I reopen a credit card after I close it?
It depends on the issuer. Some will reopen a recently closed account if you call within 30 to 60 days. Others treat a closure as permanent and require you to open a new account instead. Call the issuer and ask — if they will reopen it, they can usually do so over the phone.
What if I have a balance when I close the card?
Pay the balance first. The account will not close until the balance reaches zero. You will continue to accrue interest on the remaining amount until it is paid off. Once the balance is paid, the account will close on the date you requested.
Should I close old cards or keep them open?
Keep them open if they have no annual fee. Old accounts help your credit score because they increase the average age of your accounts and show a long history of responsible credit use. An unused card with a zero balance does not hurt you, so there is no reason to close it unless it has a fee.
What happens to my rewards points when I close a card?
Rewards usually expire 30 to 90 days after closure, though some issuers let you redeem them longer. Check your card's terms or ask the issuer before you close. Redeem any pending rewards before closure to avoid losing them.