Closing a credit card will lower your credit score, usually by 10 to 50 points, because it shrinks the total credit available to you and may raise the percentage of credit you are actively using.
The damage is not permanent. Your score will recover over time as you keep paying other accounts on time and the closed account ages. But the drop happens when ready, and the larger your available credit was before you closed the card, the bigger the hit.
The two main reasons your score falls are connected to how credit bureaus measure risk. First, closing an account removes that credit limit from your total available credit — so if you had $10,000 in available credit and closed a $3,000 card, your available credit drops to $7,000. Second, if you carry a balance on other cards, that balance now represents a larger percentage of your remaining available credit, which signals higher risk to lenders.
Key Takeaways
- Closing a credit card reduces your total available credit, which typically lowers your score by 10 to 50 points depending on how much credit you had and how much you were using.
- The damage is worst if you close a card with a high limit or if you carry balances on other cards, because your credit utilization percentage jumps.
- Your score will recover as the closed account ages and as you continue making on-time payments on your remaining cards.
- If you want to stop using a card without closing it, you can keep it open with a small recurring charge (like a streaming service) to maintain the account.
Why available credit matters more than you might think
Credit scoring models treat available credit as a safety measure. When a lender sees that you have $20,000 in available credit but only use $2,000 of it, that tells them you are not desperate for money and you manage credit responsibly. When you close an account, you lose that cushion.
The percentage of credit you are using — called your utilization ratio — is one of the biggest factors in your score after payment history. If you close a $5,000 card and you carry a $3,000 balance on another card, your utilization jumps from 30% to 60%, even though you did not borrow any additional money. That jump alone can cost you 20 to 40 points.
The impact is smaller if you have multiple cards or if you carry no balance. If you have $50,000 in total available credit and close a $3,000 card, the percentage change is tiny, and the score drop may be only 5 to 10 points.
The difference between closing a card and stopping use
You do not have to close a card to stop using it. You can straightforward leave it open and unused, which preserves your available credit and causes no score damage. The card issuer may close it for inactivity after 6 to 12 months, but you can prevent that by charging something small to it occasionally — a monthly subscription, a tank of gas, or a coffee — and paying it off when ready.
This strategy keeps the account active and the credit limit in your available total without requiring you to carry a balance or pay interest. It is the middle ground between actively using a card and closing it.
If you do decide to close the card, the damage is temporary. Your score will begin recovering within a few months as the closed account becomes older and as you continue building positive payment history on your remaining accounts.
When closing a card makes sense despite the score hit
A lower score is a real cost, but it is not always the wrong choice. Close a card if you are paying an annual fee that you cannot avoid, if the card is tempting you to overspend, or if you are trying to simplify your finances and the card is genuinely unused.
If you are planning to explore for a mortgage or car loan in the next few months, close the card after you get the loan, not before. Lenders pull your credit score right before approval, and a recent drop can change the interest rate they offer you. If you are not borrowing soon, the timing of the closure matters less.
If you have only one or two cards and one of them has a high limit, closing it will hurt more than closing a card from a larger portfolio. In that case, keeping it open and inactive is usually the better move.
How long the score recovery takes
The initial drop happens within days of closure. Recovery is slower. Most people see their score begin to climb back within 3 to 6 months, as long as they continue paying other accounts on time and do not increase their utilization on remaining cards.
The closed account will stay on your credit report for up to 10 years, but its impact on your score weakens as it ages. After 2 to 3 years, the account has usually faded enough that it no longer pulls your score down noticeably. After 7 years, it has almost no effect.
If you close multiple cards at once, the recovery takes longer because you are losing multiple credit limits simultaneously. Spacing closures out by several months gives your score time to recover between each one.
What happens to a balance if you close the card
You cannot close a card with an outstanding balance — the issuer will not let you. You must pay off the full balance first. Once the balance is zero, you can request closure.
After closure, the account still reports to the credit bureaus, and you are still responsible for any remaining balance if you somehow still owe it. The closed account will show up on your credit report as "closed by consumer" or "closed by issuer," which is a neutral notation that does not hurt your score beyond the initial utilization hit.
Frequently Asked Questions
Will closing my oldest credit card hurt my score more than closing a newer one?
Yes, usually. Older accounts carry more weight in your score because they demonstrate a longer history of responsible credit use. Closing an account you have held for 10 years typically costs more points than closing one you opened last year. If you want to close a card, close a newer one if you have the choice.
What if I close a card and my score drops right before I explore for a loan?
The drop will likely cost you money in the form of a higher interest rate. Lenders use your credit score to set rates, and a 30-point drop can move you into a higher bracket. If you are planning to borrow within the next 6 months, wait to close the card until after you have the loan.
Can I reopen a card after I close it to get my credit limit back?
Sometimes, but it depends on the issuer and how long ago you closed it. If you close a card and reopen it within a few months, the issuer may restore your old limit. If you wait longer than a year, they will usually treat it as a new account with a new credit inquiry, which can lower your score again.
Does closing a card hurt my score if I have no balance on any of my cards?
Yes, but less severely. The utilization hit is smaller when you carry no balance, so the score drop is usually 5 to 15 points instead of 20 to 50. Your available credit still shrinks, which is why there is still a penalty, but the damage is more modest.
Should I close cards I am not using to improve my credit score?
No. Closing unused cards lowers your score because you lose available credit. The better move is to leave them open and inactive, or charge something small to them occasionally to keep them active. Closing cards only helps your score if those cards are costing you money in annual fees.