What "changing" a credit card actually means
Changing credit cards means closing one card account and moving to another — or keeping both open but using the new one instead. The process depends on whether you want to close the old card, transfer a balance, or straightforward stop using it. Most people do this to get better rewards, lower interest rates, or escape an annual fee.
The key difference: closing a card affects your credit score when ready, while switching to a new card without closing the old one does not. You decide which approach fits your situation based on your credit history and what you owe.
Key Takeaways
- Switching cards without closing the old one protects your credit score by keeping your available credit high, but you will need to manage two accounts.
- If you carry a balance, transfer it to the new card before closing the old one, and confirm the transfer is complete before you close the account.
- Closing a card lowers your available credit and can drop your score by 10 to 50 points, so wait until any balance is paid off first.
- Contact your old card issuer by phone to close an account — email and online portals often do not process closures reliably.
- Request written confirmation that the account is closed and marked as "closed by customer" in your credit report.
Decide whether to close your old card or keep it open
Keeping the old card open costs you nothing if there is no annual fee, and it helps your credit score by leaving your available credit intact. If the card has an annual fee and you do not want to pay it, you have two choices: close it or call the issuer and ask them to waive the fee. Many issuers will waive a fee once if you have been a customer for a while.
Close the card only if you have paid off the balance completely. If you still owe money, that balance stays on your credit report even after you close the account, and closing it actually makes your credit score drop more because your available credit shrinks.
Transfer any balance to your new card
If you carry a balance on your old card, move it to the new one before closing the old account. Most new cards offer a balance transfer — you tell the new issuer the name of your old card and how much to transfer, and they pay off that amount on your behalf. You then owe the new issuer instead.
Balance transfers often come with a lower interest rate for a set period (usually 6 to 21 months), but they charge a fee of 3 to 5 percent of the amount transferred. Calculate whether the fee and the lower rate save you money compared to keeping the old card. Once the transfer posts — usually within 5 to 7 business days — check your old card's balance online to confirm it dropped by the transfer amount. Only then should you close the old account.
Close your old card by phone
Call the customer service number on the back of your old card or on your statement. Tell the representative you want to close the account. They may ask why, offer you a lower rate or fee to stay, or ask when you want the closure to take effect. You can usually close when ready, but some issuers allow you to set a future date.
Do not close the account online or by email if you can avoid it. Phone calls create a record that the issuer can reference if there is a dispute later. Before you hang up, ask the representative to confirm the account is closed and to note in your file that you requested the closure. Ask them to mail you written confirmation.
Verify the closure on your credit report
After you close the account, check your credit report 30 to 60 days later to confirm the closure was processed. You can view your report free once per year at annualcreditreport.com, which is the official site run by the three major credit bureaus (Equifax, Experian, and TransUnion).
Look for the old card to be marked as "closed by customer" rather than "closed by creditor" — the first shows you closed it on purpose, which looks better to lenders. If it says "closed by creditor" or if the account is still showing as open 60 days after your call, contact the issuer again and ask them to correct it. Keep the written confirmation they mailed you in case you need to dispute the report later.
Understand how closing a card affects your credit
Closing a card lowers your credit utilization ratio — the percentage of your available credit that you are using. If you have $5,000 in total available credit across all cards and you owe $1,000, your utilization is 20 percent. Closing a card with no balance removes that available credit, which can raise your utilization ratio and lower your score.
The score drop is usually temporary and ranges from 10 to 50 points depending on how much available credit you are losing. Your score recovers over a few months as you continue paying on time. If your credit score is already low or you are planning to borrow money soon, wait to close the card until after you have completed the loan or credit process.
Set up your new card and stop using the old one
Once your new card arrives, set up it by calling the number on the back or using the issuer's app or website. Update any recurring charges (subscriptions, utilities, insurance) to charge the new card instead of the old one. Check your old card's statement for the next 30 days to catch any charges you missed, then contact those merchants to update their payment information.
Keep the old card in a safe place for at least a year after closing it, in case a charge appears that you need to dispute. Do not cut it up or throw it away until you are certain no outstanding charges will appear.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, temporarily. Closing a card lowers your available credit, which can raise your utilization ratio and drop your score by 10 to 50 points. The effect is usually temporary — your score recovers over a few months if you keep paying on time. If you have a balance on the card, the damage is worse, so pay it off first.
Can I close a credit card with a balance on it?
You can, but you should not. The balance stays on your credit report and you still owe the interest, but closing the account lowers your available credit and hurts your score more. Transfer the balance to your new card first, or pay it off completely before closing.
How long does it take to close a credit card?
The closure is usually when ready when you call, but it can take 30 to 60 days to appear on your credit report. Some issuers process closures faster than others. Request written confirmation and check your credit report 60 days later to confirm it went through.
What if my old card issuer will not close my account?
This is rare, but if it happens, ask to speak to a supervisor and explain that you want the account closed. If they still refuse, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. You can also dispute the account on your credit report if it is still showing as open after 60 days.
Should I keep my old card open even if I am not using it?
If there is no annual fee, yes — keeping it open helps your credit score by maintaining your available credit. If there is an annual fee, call and ask the issuer to waive it. If they refuse and you do not want to pay, then close it, but wait until any balance is paid off first.