The basic steps to close a card
Call the customer service number on the back of your card or log into your online account and look for a "close account" or "cancel card" option. Most issuers let you close an account by phone in under five minutes. Have your account number ready, and the representative will confirm your identity, ask why you're closing the account (they may offer retention deals), and process the closure.
After you hang up, you'll receive written confirmation in the mail within one to two weeks. Keep this letter — it's your proof the account is closed. Some issuers also send confirmation by email or show the closure in your online account immediately.
The card itself doesn't stop working instantly. You may be able to use it for a few days after closure, so don't be alarmed if a charge goes through. Once the issuer's system fully processes the closure (usually within 24 to 48 hours), the card will decline.
Key Takeaways
- Call the number on your card or use your online account to request closure, and ask for written confirmation that the account is closed.
- Pay off any remaining balance before closing, because you'll still owe the debt even after the account is shut down.
- Closing a card can lower your credit score temporarily because it reduces your total available credit, but the damage fades over time.
- If you're closing a card with a long history, consider keeping it open and unused instead, because older accounts help your credit score more than new ones.
- Request written confirmation and keep it in your records to prove the account is closed if disputes arise later.
What to do with your balance before closing
If your card has a balance, you must pay it off before or during the closure process. Closing an account does not erase what you owe — the debt remains, and the issuer will still expect payment. If you close the account with an unpaid balance, you'll receive bills by mail, and the debt can be reported to credit bureaus as delinquent if you miss payments.
Pay the full balance if you can. If you can't, pay as much as possible before closing, then continue making payments on the closed account until it's gone. Some people close accounts while carrying a balance, which is allowed, but it makes the debt harder to track and can hurt your credit score more than keeping the account open while you pay it down.
How closing a card affects your credit score
Closing a card usually lowers your credit score in the short term, typically by 10 to 50 points, though the exact impact depends on your overall credit profile. The main reason is that closing an account reduces your available credit — the total amount you're allowed to borrow across all your cards. If you had a $5,000 limit and close that card, your available credit drops by $5,000, which can raise your credit utilization ratio (the percentage of your credit you're actually using). Higher utilization signals risk to lenders, so your score dips.
The damage is temporary. As you continue paying bills on time and using your remaining cards responsibly, your score will recover over several months. The closed account will stay on your credit report for seven to ten years, and older accounts actually help your score because they show a long history of responsible borrowing.
The impact is smaller if you're closing a newer card or one with a low limit. Closing an old card with a high limit hurts more because you're losing both age and available credit.
When to keep a card open instead of closing it
If the card has been open for several years, consider leaving it open even if you don't use it. Older accounts are valuable to your credit score — they prove you can manage credit over time. Closing them removes that benefit. Instead, put the card in a drawer and use it once or twice a year (buy something small and pay it off immediately) to keep the account active.
If the card charges an annual fee and you're not using it, closing makes sense. But if there's no annual fee, the cost of keeping it open is zero, and the credit score benefit of keeping an old account is real. Many people regret closing old cards once they understand this tradeoff.
If you're closing a card because you're worried about overspending, consider whether freezing the card (asking the issuer to lock it so you can't charge new purchases) might work instead. This gives you the safety of a closed card without the credit score penalty.
Handling store cards and rewards cards differently
Store credit cards (issued by retailers like Target or Macy's) often have lower credit limits and shorter histories than bank cards. Closing one usually hurts your score less than closing a major card like Visa or Mastercard. If you have a store card you don't use and it charges an annual fee, closing it is usually the right move.
Rewards cards are trickier. If you've earned points or miles you haven't redeemed, check your account before closing. Some issuers let you redeem rewards after closure, but others may forfeit them. Call and ask what happens to your rewards balance if you close the account, and redeem anything valuable before you hang up.
What happens after you close the account
The closed account will appear on your credit report with a status of "closed by consumer" or "closed by issuer." This is not a negative mark — it simply shows the account is no longer active. The account will stay on your report for seven to ten years, then disappear.
You can no longer use the card to make purchases. If you have autopay set up on that card (for utilities, subscriptions, or other bills), those payments will fail after closure. Before you close, log into any services that charge to that card and update them to a different payment method.
If you receive a bill after closure, it's normal — issuers sometimes send final statements. If you receive bills months later and you've already paid the balance, contact the issuer to confirm the account is settled. Keep your written closure confirmation handy in case you need to dispute a charge or prove the account was closed.
Closing multiple cards at once vs. spacing them out
Closing several cards in a short time frame hurts your credit score more than closing them one at a time. Each closure reduces your available credit, so closing three cards in one month has a bigger impact than closing one card per month over three months. If you need to close multiple accounts, space them out by at least a few months.
The same logic applies to opening new cards. If you're planning to close cards, avoid opening new ones in the same period. Lenders look at your recent activity, and a pattern of opening and closing accounts quickly can signal financial trouble, even if you're just cleaning up your wallet.
Frequently Asked Questions
Will closing a card hurt my credit score permanently?
No. Your score will drop temporarily (usually 10 to 50 points), but it recovers over several months as you continue paying bills on time. The closed account stays on your report for seven to ten years, which actually helps your score because it shows a long credit history. The damage is not permanent.
Can I close a card if I still owe money on it?
Yes, you can close an account with an unpaid balance. The debt doesn't disappear — you'll still owe it and receive bills. However, it's better to pay off the balance first or at least pay it down, because carrying a balance on a closed account can hurt your credit score more than paying it down on an open account.
What if the issuer won't let me close my account?
Most issuers will close your account if you request it, but some may ask questions or offer incentives to keep it open. If they refuse, ask to speak with a supervisor. You have the right to close your account. If the issuer still refuses, file a complaint with the Consumer Financial Protection Bureau (CFPB).
Do I need to cut up the card after closing it?
It's a good idea to cut up or shred the card so you don't accidentally try to use it. However, the account is closed whether you destroy the card or not. If you want to keep the card for your records (to prove you owned it), you can store it safely without cutting it up.
How long does it take for a closed account to stop showing on my credit report?
A closed account stays on your credit report for seven to ten years, depending on whether it was in good standing or had missed payments. During that time, it continues to help your credit score because it shows a long payment history. After seven to ten years, it automatically falls off your report.