The right way to close a credit card depends on whether you want to keep the account history

Closing a credit card is straightforward — you call the issuer and ask them to close the account — but the timing and method matter for your credit score. If you close a card with a balance, you still owe the money; the card just stops working. If you close a card with zero balance, your credit utilization ratio (the percentage of available credit you're using) goes up immediately, which can lower your score by 10 to 50 points depending on how much credit you have open elsewhere.

The bigger long-term hit comes from losing the account history. Credit scoring models reward older accounts, so closing your oldest card costs more points than closing a newer one. If the card has been open for 10+ years, closing it removes that age from your active accounts and can drop your score by 20 to 100 points over time. The account stays on your credit report for 10 years after closing, but it stops helping your score after about 7 years.

The practical choice: close cards you don't use and don't want to pay annual fees on, but keep cards that are old, have no annual fee, or have a low credit limit relative to your total available credit.

Key Takeaways

  • Call the card issuer's customer service number on the back of your card and request account closure; ask them to confirm the closure in writing or note the date and time of the call.
  • Pay off any balance before closing, because closing a card with a balance doesn't erase the debt — you still owe it and will receive bills.
  • Closing a card raises your credit utilization ratio immediately if you have other open cards, which can lower your score by 10 to 50 points.
  • Older cards cost more to close in credit score damage; closing a card open for 10+ years typically costs 20 to 100 points over time.
  • The closed account stays on your credit report for 10 years but stops helping your score after roughly 7 years.

Pay off the balance before you call

If the card has a balance, pay it down to zero before closing. Closing an account with a balance doesn't forgive the debt — you still owe every dollar, and the issuer will still send you bills. You'll just lose the ability to make new charges, which can actually make the debt harder to manage if you need to move money around.

If you're carrying a balance because you can't afford to pay it off, closing the card won't help. Focus on paying down the balance first, then close once it hits zero. If you're closing because of an annual fee, you can call and ask the issuer to waive the fee before you close; some issuers will do this for long-time customers.

Call the issuer and request closure

Contact the customer service number on the back of your card. Tell them you want to close the account. They may ask why, offer you a lower annual fee, or try to keep you as a customer — you can say no to all of it. The process takes about 5 minutes.

Ask the representative to confirm the account is closed and note the date and time of the call. Some issuers will email you a confirmation; others won't. Write down the representative's name, the date, and the time yourself. This creates a record if there's a dispute later about whether the account was actually closed.

After you hang up, check your credit report 30 to 60 days later to confirm the account shows as closed. You can check for free at annualcreditreport.com, which is the official site run by the three major credit bureaus (Equifax, Experian, and TransUnion). If the account still shows as open, call the issuer again.

Understand the credit score impact

Your credit score will likely drop when you close a card, but the amount depends on your overall credit profile. The two main factors are utilization and account age.

Utilization impact: If you have $10,000 in available credit across all cards and you're using $2,000, your utilization is 20%. If you close a card with a $3,000 limit and zero balance, your available credit drops to $7,000, and your utilization jumps to 29% (still $2,000 used ÷ $7,000 available). This change alone can drop your score 10 to 50 points. The impact is smaller if you have a lot of available credit or if the card you're closing has a small limit.

Age impact: Credit scoring models factor in the age of your oldest account and the average age of all your accounts. Closing an old card removes that age from the calculation. If you're closing your oldest card, the impact is larger — typically 20 to 100 points over time. If you're closing a newer card, the impact is smaller.

The score drop is usually temporary. As you pay down balances on other cards, your utilization drops back down and your score recovers. If you're planning to apply for a mortgage or loan, close cards at least 6 months before you apply.

What happens to rewards points and cash back

Closing a card doesn't automatically erase your rewards balance, but the rules vary by issuer. Some let you redeem points for 30 to 90 days after closure; others let you redeem indefinitely. A few issuers will forfeit your points if you close the account.

Before you call to close, log into your account online and check the rewards balance. Redeem any points or cash back you have sitting there. If you're not sure about the issuer's policy, ask the representative before you request closure: "What happens to my rewards points if I close this account?" Get the answer in writing if possible.

If you have a large rewards balance you want to keep, you can ask the issuer to downgrade the card to a no-annual-fee version instead of closing it. This keeps the account open and the rewards intact, and it removes the annual fee cost.

Keep the account open if it has no annual fee

If the card has no annual fee and you're not using it, consider keeping it open instead of closing it. An unused card with zero balance costs you nothing and helps your credit score by keeping your utilization ratio low and your average account age high.

The only reason to close a no-annual-fee card is if the issuer is closing it for inactivity (which is rare and usually happens after 12+ months of no charges) or if you're concerned about fraud risk. For most people, an old card sitting in a drawer is helping your credit more than it's hurting it.

If you're worried about fraud, you can freeze the card by asking the issuer to lock it, which prevents new charges without closing the account. This keeps the account history and credit benefits while removing the fraud risk.

Frequently Asked Questions

Will closing a credit card hurt my credit score?

Yes, usually by 10 to 100 points depending on the card's age and your available credit. The impact is temporary — your score recovers as you pay down balances on other cards. Closing an old card costs more points than closing a new one.

Can I close a credit card with a balance?

You can request closure, but you still owe the balance. The card stops working, but you'll continue receiving bills. Pay off the balance first, then close the account.

What happens to my rewards points when I close the card?

It depends on the issuer. Some let you redeem points for 30 to 90 days after closure; others let you redeem indefinitely. A few forfeit points upon closure. Redeem your points before you close, or ask the issuer about their policy first.

Should I close old cards or new cards?

Close newer cards if you have to close one. Older cards help your credit score more because of their age. If the old card has no annual fee, keep it open even if you don't use it.

How long does it take to close a credit card?

The call takes about 5 minutes. The account typically closes within 1 to 2 weeks, though it may take 30 to 60 days to show as closed on your credit report. Confirm closure by checking your credit report after 60 days.