The basic steps to close a card
Call the card issuer's customer service number on the back of your card or on your statement. Tell them you want to close the account. They will ask why, but you do not have to give a detailed reason — "I'm not using it anymore" is enough. Write down the date, time, and the name of the representative you spoke with.
After you hang up, send a written request by mail or through your online account portal asking them to close the card. Include your account number, the date you called, and the name of the person you spoke with. Keep a copy for your records. The issuer will send you a confirmation letter once the account is closed.
Before you close the card, pay off any remaining balance in full. Most issuers will not close an account with an outstanding balance, and if they do, you will still owe the debt and may face late fees or interest charges.
Key Takeaways
- Call customer service, state you want to close the account, and follow up with a written request by mail or through your online portal.
- Pay off your full balance before closing — issuers typically will not close accounts with outstanding debt.
- Closing a card can lower your credit score temporarily because it reduces your total available credit and may raise your credit utilization ratio on remaining cards.
- Closing an old card hurts your score more than closing a new one, because length of credit history accounts for about 15 percent of your score.
- If you want to keep the account open without using it, ask the issuer to waive the annual fee instead of closing it.
Why closing a card affects your credit score
Your credit score is built from five factors: payment history (35 percent), amounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent), and new credit (10 percent). Closing a card touches three of these.
When you close a card, your total available credit shrinks. If you have $5,000 in debt spread across remaining cards and your total available credit drops from $20,000 to $10,000, your credit utilization ratio jumps from 25 percent to 50 percent. Credit bureaus see higher utilization as higher risk, and your score will drop. The impact is temporary — it recovers as you pay down balances.
Closing an old card also shortens your average age of accounts, which lowers the "length of credit history" factor. A card you have held for ten years matters more than one you have held for two years. Closing the older card does more damage to this factor than closing a newer one.
When closing a card makes sense
Close a card if you carry a balance on it and the interest rate is high, or if the card has an annual fee you do not want to pay. In both cases, the cost of keeping it open outweighs the credit score impact.
Close a card if you are carrying it for a reason you no longer have — a store card you opened for a one-time discount, a travel card you no longer use, or a card tied to a closed business account. The score hit is real but temporary, and you will not be paying fees or interest on something you do not need.
Do not close a card just because you are not using it. An unused card with a zero balance helps your credit utilization ratio and costs you nothing if there is no annual fee. Many people keep old cards open for exactly this reason.
Steps to take before you call
Check your statement to see if there is an annual fee coming up. If there is, call before the fee posts — some issuers will waive it if you ask, which lets you keep the account open without paying. If the fee has already posted, ask if they will refund it as a one-time courtesy.
Review your account for any recurring charges — subscriptions, memberships, or automatic payments — and move them to another card or payment method before closing. Missing a payment because you forgot to update it will hurt your score more than closing the card will.
If the card has rewards points or cash back pending, use them or redeem them before closing. Once the account is closed, you typically cannot redeem rewards that have not been claimed, though some issuers will honor pending redemptions for a limited time after closure.
What happens after you close the account
The closed account will stay on your credit report for seven to ten years, depending on whether the account was in good standing when you closed it. During that time, it still counts toward your credit history length, so closing it does not erase it from your record.
You will not be able to use the card, and the issuer will not report new activity on it. If you later change your mind, you can sometimes ask the issuer to reopen the account within a short window — usually 30 to 60 days — but this is not may provide. After that window, you would have to apply for a new card.
If you closed the card in good standing with a zero balance, the account closure itself will not appear as negative on your report. If you closed it while carrying a balance or with late payments, those negative marks will remain on your report for seven years from the date of the first missed payment.
Alternatives to closing a card
If the only reason you want to close the card is an annual fee, call and ask the issuer to waive it. Many issuers will do this for customers with good payment history, especially if you have been with them for several years. This keeps the account open and preserves your credit history length at no cost.
If you want to stop using the card but do not want to close it, put it in a drawer. A card with a zero balance and no activity does not hurt your score — it helps it by keeping your utilization ratio low. You can use it once or twice a year to keep the account active if the issuer has an inactivity policy.
If you are closing multiple cards at once, space them out by a few months. Closing several accounts in a short period signals financial distress to credit bureaus and can cause a larger score drop than closing them one at a time.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, but the damage is temporary. Your score will drop because your available credit shrinks and your utilization ratio rises. The impact is larger if you close an old card than a new one. The score typically recovers within a few months as you pay down balances on remaining cards.
Can I close a credit card if I still owe money on it?
Most issuers will not close an account with an outstanding balance. You must pay off the full balance first. If an issuer does close an account with a balance, you still owe the debt and will continue to accrue interest and fees until you pay it.
What happens to my rewards points when I close a card?
Unredeemed rewards are usually forfeited when you close the account. Some issuers allow a grace period of 30 to 60 days to redeem points after closure, but this varies. Redeem any pending rewards before you close the account to avoid losing them.
How long does it take to close a credit card?
The account is typically closed within one to two billing cycles after you request closure. You will receive a confirmation letter from the issuer. The closed account will remain on your credit report for seven to ten years.
Should I close old cards or new cards first?
Close newer cards before older ones. Your credit score weights the age of your accounts, so closing a card you have held for two years does less damage than closing one you have held for ten years. Keep your oldest accounts open as long as they have no annual fee.