Closing a credit card will usually lower your credit score, but the size of the drop depends on how much credit you're using and how long you've held the card.
When you close an account, two things happen to your credit profile. First, your total available credit shrinks — if you had a $5,000 limit and you're carrying a $2,000 balance elsewhere, your credit utilization ratio jumps from 40% to 67%. Second, the account stops building payment history, which matters less when ready but affects your score over time. The damage is temporary in most cases, but it's real enough that closing a card should be a deliberate choice, not an accident.
The score drop is usually between 5 and 50 points, depending on your starting score and your credit mix. Someone with excellent credit and multiple accounts will see a smaller percentage hit than someone with few accounts or a thin credit file. If you're planning to explore for a mortgage or car loan in the next few months, closing a card right before that process can cost you a lower interest rate.
Key Takeaways
- Closing a card reduces your available credit, which raises your credit utilization ratio and typically lowers your score by 5 to 50 points.
- The impact is usually temporary — your score will recover within a few months if you keep other accounts in good standing and pay on time.
- Closing an old card hurts more than closing a new one, because the account history disappears from your credit report after seven years.
- If you want to stop using a card without closing it, you can keep it open with a small recurring charge to maintain activity.
- Closing a card matters less if you have multiple accounts and low overall utilization; it matters more if you have few cards or already carry high balances.
Why closing a card lowers your score when ready
Your credit score is built from five main factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). Closing a card affects three of these.
Credit utilization is the most when ready hit. If you have two cards with $5,000 limits each and a $2,000 balance on one, you're using 20% of your available credit. Close the unused card and your available credit drops to $5,000, so the same $2,000 balance now represents 40% utilization. Most scoring models penalize utilization above 30%, so this single action can drop your score noticeably.
Length of credit history takes a longer-term hit. If the card you're closing is your oldest account, closing it will lower your average account age. This factor matters less than utilization, but it still counts. If the card is relatively new, the impact is minimal.
Credit mix — the variety of credit types you hold (credit cards, auto loans, mortgages, installment plans) — can shift slightly. If you have only credit cards and you close one, your mix becomes less diverse. This is usually a small effect unless you have very few accounts.
How long the score drop lasts
The utilization hit is temporary. Once you close the card, your score will begin recovering within one or two billing cycles as long as you keep paying other accounts on time and don't run up new balances. Most people see their score return to its previous level within three to six months.
The longer-term effect depends on whether the closed account stays on your credit report. Accounts in good standing remain on your report for up to ten years after closing. During that time, they still contribute to your average account age and payment history, so the damage is limited. However, if the account had missed payments or went to collections, it will fall off after seven years, which can actually improve your score at that point.
If you're closing an old card with a long, clean payment history, that account will keep helping your score for years even after it's closed. If you're closing a newer card, the impact fades faster.
Closing an old card versus a new card
Closing your oldest credit card does more damage than closing a card you opened last year. Your average account age is one of the factors in your score, and removing a ten-year-old account lowers that average more sharply than removing a one-year-old account.
If you have multiple old cards and want to reduce the number you're managing, close the newest one first. If you have only one old card and several newer ones, keep the old one open even if you don't use it. The cost of keeping it open (usually zero, if there's no annual fee) is much lower than the score hit from closing it.
The exception is a card with an annual fee. If you're paying $95 or $150 per year to keep a card open, the score benefit of keeping it may not be worth the cost. Run the numbers: if closing the card will cost you 20 points and you're not explore for credit soon, the fee might be the bigger expense.
What to do if you want to stop using a card without closing it
You don't have to close a card to stop using it. You can leave it open, put it in a drawer, and never charge anything to it. The account will stay active on your credit report, your available credit stays the same, and your score takes no hit.
The risk is that the card issuer may close it for inactivity. Most issuers will close an account if there's no activity for 12 to 24 months, though some are more lenient. To prevent this, use the card for a small recurring charge — a streaming subscription, a coffee once a month, anything that generates a transaction every few months. Pay it off in full when the bill arrives. This keeps the account active without costing you money or creating a balance.
Another option is to call the issuer and ask them to waive the annual fee if there is one. Many will do this for long-standing customers, especially if you've had the card for years and maintained good payment history. This removes the financial reason to close the card.
Timing: when closing a card matters most
If you're planning to explore for a mortgage, car loan, or other major credit in the next three to six months, do not close a card right before that process. Lenders pull your credit score at the time of process, and a recent score drop can mean a higher interest rate or a smaller loan amount.
If you're not explore for credit soon, the timing is less critical. Your score will recover on its own. However, if you're carrying high balances on other cards, closing a card will make your utilization worse, so it's worth paying down those balances first if you can.
If you're closing a card because you're trying to reduce debt, make sure you're not just moving the balance to another card. Transferring a $5,000 balance from the card you're closing to a card you're keeping doesn't help your utilization — it just moves the problem. Pay down the balance instead, then close the card if you still want to.
How to close a credit card the right way
If you've decided to close a card, follow these steps to avoid problems. First, pay off any remaining balance. You can't close a card with an outstanding balance, and even if the issuer allows it, you'll still owe the debt.
Second, call the card issuer directly. Don't close the account online or through the app if you can avoid it — a phone call creates a record and gives you a chance to ask about annual fee waivers or other options before you commit. Have your account number ready.
Third, ask the issuer to confirm the closure in writing. Request that they send you a letter stating the account is closed at your request and that the balance is zero. This protects you if there's a dispute later.
Fourth, check your credit report a few weeks later to confirm the account shows as closed. You can get a free report from each of the three bureaus (Equifax, Experian, and TransUnion) once per year at annualcreditreport.com. Make sure the account is listed correctly.
Frequently Asked Questions
How much will my score drop if I close a credit card?
The drop is usually between 5 and 50 points, depending on your current score, how much credit you're using, and how old the card is. Someone with excellent credit and multiple accounts will see a smaller hit than someone with few accounts or high utilization. The drop is temporary and most people recover within three to six months.
Should I close a credit card I'm not using?
Not necessarily. If the card has no annual fee, keeping it open costs you nothing and protects your credit score by maintaining your available credit and account age. Close it only if there's an annual fee you can't get waived, or if managing the account is genuinely difficult for you.
Will closing a credit card hurt my credit if I have other cards?
Less than if you had only one card, but it will still hurt. The impact depends on how much credit you're using overall. If you have multiple cards and low utilization, closing one card will raise your utilization ratio but probably not enough to drop your score significantly. If you're already using 50% or more of your available credit, closing a card will make the problem worse.
Can I reopen a credit card after I close it?
You can ask the issuer to reopen the account, but they're not required to say yes. If you closed it recently and in good standing, many issuers will reopen it. If it's been months or years, or if you closed it because of a dispute, they may refuse. It's better to keep a card open than to close it and hope to reopen it later.
Does closing a credit card affect my ability to get a mortgage?
Yes, if you close it shortly before explore. A recent score drop can lower your credit score enough to move you into a higher interest rate bracket or reduce the amount you can borrow. If you're planning to explore for a mortgage in the next six months, wait to close any cards until after the loan closes.