The right way to cancel depends on why you're doing it
Canceling a credit card is straightforward — you call the card issuer and ask them to close the account — but the timing and order of your other cards matter more than the cancellation itself. If you cancel the wrong card at the wrong time, you can lower your credit score even though you did nothing wrong with that card. The damage comes from how cancellation changes two numbers that credit scoring models watch: your total available credit and how much of it you're using.
Before you call, decide whether you're canceling because you want to close an old account, because you're paying off debt, or because you're unhappy with the card. Each situation has a different sequence of steps that protects your score.
Key Takeaways
- Canceling a card lowers your total available credit, which can raise your credit utilization ratio and lower your score even if you pay on time.
- Pay off the full balance before you cancel, because closing an account with a balance can hurt your score more than closing one at zero.
- If you have multiple cards, cancel the newest one or the one with the smallest credit limit first to minimize the impact on your available credit.
- Call the card issuer directly — do not rely on online account closure, because you need to confirm the account is marked as "closed by customer" in your credit file.
- After cancellation, keep checking your credit report for six months to make sure the card reports as closed and the balance stays at zero.
Pay off the balance completely before calling to cancel
A card with a zero balance does less damage to your score when closed than a card with a balance. If you cancel while you still owe money, the issuer will continue to report that balance to the credit bureaus even after the account is closed. This counts against your credit utilization ratio — the percentage of your total available credit that you're actually using — and utilization is one of the largest factors in your credit score.
If you're carrying a balance across multiple cards, pay off the card you plan to cancel first. Then wait one or two billing cycles for that zero balance to report to the credit bureaus before you call to close the account. This gives the bureaus time to update your file and show the lower utilization.
Choose which card to cancel if you have more than one
If you own multiple credit cards, the order matters. Cancel the card that will do the least damage to your available credit. That usually means the newest card or the one with the smallest credit limit.
Avoid canceling your oldest card. Credit age — how long you've held your accounts — is another major factor in credit scoring. Closing your oldest account removes years of history from your active accounts and can lower your score. If you have an old card you no longer use, consider keeping it open and using it once or twice a year instead of canceling it.
If one of your cards has an annual fee and you're canceling to avoid paying it, call the issuer first and ask if they will waive the fee or convert the card to a no-fee version. Many issuers will do this rather than lose the account, and it solves the problem without closing the card.
Call the card issuer and confirm the closure details
Find the customer service number on the back of your card or on your billing statement. Call and tell them you want to close the account. They will ask why, and they may offer you a retention offer — a lower interest rate, a fee waiver, or a cash bonus to keep the card open. Decide in advance whether you would accept any offer, because the conversation will move quickly.
If you want to close the account, confirm these details before you hang up: the account is closed effective when ready, any remaining balance is zero, and the account will report to the credit bureaus as "closed by customer" (not "closed by issuer"). Write down the date, the name of the representative, and a confirmation number if they give you one. Ask if they will send you written confirmation by mail or email.
Do not close the account online if your card issuer offers that option. Online closure sometimes does not trigger the right status code in the credit reporting system, and you have no record of the conversation if something goes wrong later.
What happens to your credit score when ready after cancellation
Your score may drop by 5 to 10 points in the first few days after you close the account, because your available credit has shrunk. This is normal and temporary. The drop is usually larger if the card you canceled had a high credit limit or if you were using a large percentage of your total available credit before the cancellation.
The score will begin to recover within a few weeks as the bureaus update your file. If you keep your other cards open, pay them on time, and keep the balances low, your score will return to its previous level within two to three months. The damage is much smaller if you canceled a card with a zero balance than if you canceled while carrying a balance.
Monitor your credit report after the account closes
Request a free copy of your credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — at annualcreditreport.com. You are may have access to to one free report from each bureau every 12 months. Check that the closed card reports as "closed by customer" and that the balance shows as zero.
Sometimes a closed account will continue to report a balance by mistake, or it will report as "closed by issuer" instead of "closed by customer." If either happens, contact the bureau in writing and dispute the error. The bureau has 30 days to investigate and correct it. Keep copies of your dispute letter and any response from the bureau.
Check your reports again three months after cancellation and six months after cancellation. Most errors appear within the first month, but it is worth verifying that the account stays closed and the balance stays at zero.
Alternatives to canceling if you want to reduce your card count
If you have many cards and want to simplify, you do not have to cancel them all. You can keep old cards open and unused — they do not cost you anything if they have no annual fee, and they help your credit score by keeping your available credit high. Many people keep three to five cards open and active, and close the rest.
If a card has an annual fee and you do not want to pay it, call and ask for a downgrade to a no-fee version of the same card before you cancel. This keeps the account open and preserves the credit history without the fee. If the issuer will not downgrade, then cancellation is the right choice.
Frequently Asked Questions
Will canceling a credit card hurt my credit score?
Yes, but usually only temporarily. Your score may drop 5 to 10 points because your available credit shrinks. The drop is larger if you cancel a high-limit card or if you were using a lot of your available credit before cancellation. The score recovers within two to three months if you keep other cards open and pay on time.
Should I cancel a card before or after paying it off?
Pay it off first, then wait one or two billing cycles for the zero balance to report to the credit bureaus. Then cancel. Canceling while you still owe money counts the balance against your utilization ratio even after the account closes, which hurts your score more than canceling at zero.
What if the card issuer won't let me close the account?
Card issuers cannot refuse to close an account. If a representative says they cannot close it, ask to speak to a supervisor. If you still have trouble, send a written request by certified mail to the issuer's address and keep a copy. The account must be closed within 30 days of your request.
Can I reopen a card after I cancel it?
Sometimes. Some issuers will reopen a recently closed account if you call within 30 to 60 days. After that, you would have to open a new account, which would be a new account with a new credit history. Call the issuer if you change your mind soon after canceling.
Do I need to cut up the card after I cancel it?
Yes. Cut the card in half or shred it so it cannot be used. The account is closed, so the card will not work, but destroying it prevents someone from finding it and attempting to use it.