Whether to cancel depends on your credit score, how long you've held the card, and whether you're paying an annual fee
Credit One Bank issues cards primarily for people rebuilding credit, and they charge an annual fee — typically $39 to $99 depending on the card tier. If you're paying that fee and no longer need the card, closing it makes sense. If you've moved to a better card with no annual fee and your credit score has improved, you're not losing much by closing it. But if your credit is still thin, closing your oldest card can hurt your score more than the fee costs you.
The real question is not whether Credit One is a good card — it's whether keeping it open costs you more in fees than it costs you in credit score damage. Work through that math before you call to cancel.
Key Takeaways
- Credit One charges an annual fee of $39 to $99, so if you're not using the card and paying that fee, closing it saves you money each year.
- Closing your oldest credit account can lower your credit score by reducing your average account age, even if you have other cards open.
- If your credit score is below 650 and this is one of your only open accounts, keeping the card open (even unused) usually helps your score more than the fee hurts it.
- Closing the card does not erase your payment history — that stays on your report for seven years and continues to help your score.
- Before you cancel, check whether you can downgrade to a no-fee version of the card instead, which some cardholders have done.
When the annual fee makes closing the right choice
If you're paying $39 or more per year and you have other credit cards with no annual fee, closing Credit One is usually worth it. The fee is real money leaving your account every year, and if your credit score is already solid (670 or above), the score damage from closing one card is often temporary and small.
The math changes if you have multiple cards. Closing one card while keeping two or three others open spreads your credit history across more accounts, so the loss of average account age is less severe. If Credit One is one of five open cards, closing it might drop your score 10 to 20 points. If it's one of two, the drop could be 30 to 50 points.
When keeping the card open (even unused) saves your score
If your credit score is still building — under 650 — and you have few other open accounts, the annual fee might be cheaper than the score damage. A 50-point drop in your score could cost you hundreds of dollars in higher interest rates on a car loan or mortgage later. In that case, keeping the card open and paying the fee is an investment in your credit profile.
You do not have to use the card to keep it open. Put a small recurring charge on it (like a streaming service) and pay it off each month. This keeps the account active without requiring you to carry a balance. Credit One reports to all three major bureaus, so the account history helps your score whether you swipe the card or not.
How closing the card affects your credit report
Closing a credit card removes it from your list of open accounts, which affects two parts of your credit score: your average account age and your credit utilization ratio. If Credit One is your oldest card, closing it lowers your average age. If you carry balances on other cards, closing this one (even if it has a zero balance) removes available credit, which raises your utilization percentage.
Your payment history on the card does not disappear. Credit One will report the account as "closed by consumer" on your credit report, and that history stays visible for seven years. Lenders can still see that you paid on time, which continues to help your score — but the account no longer counts toward your active account mix.
Steps to cancel your Credit One card
Call Credit One Bank's customer service number on the back of your card. Have your account number ready. Tell them you want to close the account. They may offer to waive the annual fee or move you to a no-fee card — listen to the offer, but do not feel obligated to accept it if you've already decided to close.
After you hang up, confirm the closure in writing. Send a letter to Credit One's mailing address (listed on your statement) stating your account number, your name, and the date you called to close the account. Keep a copy. This creates a paper trail in case there are questions later about whether the account was actually closed.
Check your credit report 30 to 60 days after closure to confirm the account shows as closed. You can view your report free once per year at annualcreditreport.com. If the account still shows as open, call Credit One again and ask them to confirm the closure date.
What to do with the card after you close it
Once the account is closed, do not throw the card away when ready. Wait until you receive written confirmation from Credit One that the account is closed. Then cut the card in half and throw it away, or shred it. Do not leave an active card lying around — if someone finds it, they could attempt to use it, and you would be liable for fraudulent charges until you report it.
If you have an automatic payment set up on the card (like a subscription), move it to another card before you close the account. Credit One will not process charges after closure, and your subscription will fail, which could hurt your credit if the merchant reports a missed payment.
Alternatives to closing: downgrade or keep it dormant
Before you cancel, ask Credit One whether they offer a no-annual-fee version of their card. Some cardholders have successfully requested a downgrade to a basic card with no fee. This keeps your account open and your credit history intact, but stops the annual charge. It is worth a phone call to ask.
If downgrading is not an option and you decide to keep the card, you do not have to use it. Put it in a drawer. The account will stay open as long as you do not close it, and Credit One will continue to report your account status to the bureaus. The annual fee will still hit your account each year, but you are paying for the credit-building benefit, not for the card itself.
Frequently Asked Questions
Will closing Credit One hurt my credit score?
Yes, but how much depends on your overall credit profile. If you have multiple cards and a good score, the damage is usually 10 to 30 points and recovers within a few months. If this is one of your only cards or your oldest account, the damage could be 30 to 50 points and take longer to recover. If your score is under 650, the damage may outweigh the benefit of stopping the annual fee.
Can I reopen the account after I close it?
Credit One may allow you to reopen a recently closed account, but it is not may provide. If you close the account and then change your mind within a few weeks, call and ask. After several months, reopening becomes harder. If you think you might want the card back, do not close it yet — keep it dormant instead.
What happens to my balance if I close the card with a balance?
You still owe the balance. Closing the account does not erase the debt. You will continue to receive statements and must continue to make payments. The interest rate stays the same unless Credit One changes it. Pay off the balance before closing if you can, so you do not carry debt on a card you are no longer using.
Do I have to call, or can I close the card online?
Credit One does not offer online account closure through their website or app. You must call customer service. Have your account number ready and be prepared to confirm your identity. Ask for a confirmation number before you hang up.
How long does it take for the account to show as closed on my credit report?
Credit One typically reports the closure within 30 to 60 days. Check your credit report at annualcreditreport.com to confirm. If the account still shows as open after 60 days, contact Credit One again and ask them to verify the closure date with the credit bureaus.