The right way to close a credit card depends on whether you want to keep the account open or shut it down completely
Closing a credit card is straightforward: call the card issuer's customer service number on the back of your card, ask to close the account, and confirm they have processed the request. However, closing a card affects your credit score because it reduces your available credit and may raise the percentage of credit you are using relative to your limits. Before you call, pay off the full balance, decide whether closing is the right move for your credit profile, and understand what happens to rewards points or cash back you have earned.
The timing and method matter less than the order of your steps. Most people close cards impulsively and regret it later. This guide walks you through the decision first, then the mechanics of actually closing the account.
Key Takeaways
- Pay the card balance to zero before you call to close it, because closing an account with a balance can damage your credit score more than closing a paid-off account.
- Closing a card reduces your total available credit, which can raise your credit utilization ratio and lower your score even if you pay other cards on time.
- Rewards points and cash back typically remain in your account after closure, but some cards expire them after a set period of inactivity — check your cardholder agreement first.
- Call the customer service number on the back of your card and ask to close the account; request written confirmation by mail or email.
- If you want to keep the card open but stop using it, you can straightforward put it away — closing it is not necessary and may hurt your credit more.
Decide whether closing the card is actually the right move
Closing a credit card lowers your credit score in most cases, even if you have paid off the balance. The damage comes from two directions: the card no longer counts toward your available credit, which raises your credit utilization ratio (the percentage of your total credit limit that you are using), and the account closure itself may be noted on your credit report. If you carry balances on other cards, closing this one will make those balances look larger by comparison.
The score drop is usually temporary — it recovers over time as you continue to pay bills on time — but it can cost you if you are about to explore for a mortgage, car loan, or other credit. If you straightforward dislike the card or do not use it, putting it in a drawer costs you nothing and preserves your credit profile. You only need to close it if the annual fee is high, the card is linked to fraud or identity theft, or you are trying to reduce the temptation to overspend.
If the card has an annual fee and you have not used it in months, call the issuer first and ask whether they will waive the fee or downgrade you to a no-fee version of the same card. Many issuers will do this to keep your account open, and it solves the problem without closing the account.
Pay off the full balance before you call
Do not close a card while you owe money on it. A balance on a closed account still counts against your credit utilization ratio, and the account will continue to report to the credit bureaus. Closing an account with a balance can damage your score more than closing a paid-off account because it signals that you are not using the credit responsibly.
Transfer the balance to another card if you need time to pay it off, or set up a payment plan before you call to close. Once the balance reaches zero, wait for the next statement to confirm the zero balance appears in writing, then call customer service.
Check what happens to your rewards and cash back
Most credit card issuers let you keep rewards points or cash back after you close the account, but the rules vary. Some cards expire rewards if the account is inactive for a certain period — often 12 to 24 months — so you need to know the important date before you close.
Log into your online account or call customer service and ask: "What happens to my rewards points if I close this account?" Write down the answer and the expiration date if there is one. If you have a large balance of points or cash back, redeem it before you close the account to avoid losing it. Most issuers let you redeem rewards up until the moment the account closes, and some allow redemption for a short period after closure.
Call the issuer and request written confirmation
Find the customer service number on the back of your card or on your most recent statement. Call during business hours and tell the representative you want to close the account. They will ask why you are closing it — this is optional to answer, but some issuers use the feedback to improve their products.
The representative will confirm your identity, review your account, and process the closure. Ask them to send you written confirmation by mail or email that the account has been closed. This confirmation protects you if there is a dispute later about whether the account was actually closed. Request a reference number for the closure as well.
Do not close the account online if the option is available. Closing by phone creates a record of the conversation and gives you a chance to ask questions. If you close online, you have no confirmation and no way to verify the closure was processed correctly.
Monitor your credit report after closure
After you close the account, check your credit report within 30 to 60 days to confirm the closure was recorded correctly. You can view your credit report for 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 closed account on your report and verify that the balance shows as zero and the status shows as "closed by consumer" or "closed at consumer's request." If the account still shows as open or if the balance is not zero, contact the issuer again and ask them to correct it. Errors on your credit report can lower your score and affect your ability to borrow in the future.
What to do if you regret closing the card
If you closed a card and your credit score dropped more than you expected, you may be able to reopen it. Call the issuer within 30 days of closure and ask whether they can reopen the account. Many issuers will do this if you ask quickly, especially if you have been a long-term customer with a good payment history.
If the issuer will not reopen the account, the damage to your score will fade over time. Continue to pay your other bills on time and keep your balances low on remaining cards. Your score will recover within a few months to a year, depending on how much the closure affected your utilization ratio.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, in most cases. Closing a card reduces your available credit, which raises your credit utilization ratio and typically lowers your score. The impact is usually temporary and recovers over time as you continue to pay bills on time. If you do not need to close the card, keeping it open preserves your credit profile.
What happens to my rewards points when I close the card?
Most issuers let you keep rewards points after closure, but some expire them if the account is inactive for 12 to 24 months. Call customer service before you close and ask about the expiration policy. If you have a large balance, redeem the points before closure to avoid losing them.
Can I reopen a credit card after I close it?
Yes, if you call within 30 days of closure. Many issuers will reopen the account if you ask quickly, especially if you have been a good customer. After 30 days, reopening becomes much harder or impossible, so act fast if you change your mind.
Do I have to pay an annual fee before I close the card?
No. If an annual fee is pending and you close the account before the fee posts, you typically will not owe it. However, if the fee has already posted to your account, you may need to pay it. Call customer service and ask whether the fee can be waived or refunded before you close.
What if the card issuer refuses to close my account?
Card issuers are required to close accounts when you request it. If a representative refuses, ask to speak with a supervisor or call back and try again. Document the date and time of your call and the representative's name. If the account does not close within 30 days, file a complaint with the Consumer Financial Protection Bureau.