Yes, you can close a credit card, but the timing and method matter for your credit score
You can close a credit card at any time by calling the card issuer or requesting closure online through your account. The card company will stop letting you use it, and your account will move to a closed status. However, closing a card can lower your credit score because it reduces the total credit available to you and may shorten your average account age — both factors that credit scoring models weight heavily. The damage is usually temporary, but it can be significant in the short term.
The key decision is not whether you can close the card, but whether you should, and when. Closing a card you've held for years hurts more than closing a new one. Closing your only card or your card with the highest limit hurts more than closing one among several. And closing a card while you're trying to get approved for a mortgage or loan hurts more than closing one when you're not applying for credit.
Key Takeaways
- Closing a credit card typically lowers your credit score because it reduces your available credit and may shorten your credit history.
- The damage is usually temporary — your score often recovers within a few months if you keep other accounts in good standing.
- Closing a card you've held for many years causes more damage than closing a newer card, because credit age matters to your score.
- If you're planning to apply for a mortgage, car loan, or other major credit in the next six months, wait to close the card until after approval.
- Paying off the balance before closing is necessary, but leaving the card open with a zero balance is often better for your score than closing it.
What happens to your credit score when you close a card
Your credit score depends partly on how much credit you have available versus how much you're using — this is called your credit utilization ratio. If you have $10,000 in total credit limits and you're using $2,000, your utilization is 20 percent. When you close a card with a $5,000 limit, your total available credit drops to $5,000, and suddenly you're using 40 percent of what's available. That shift alone can drop your score by 10 to 50 points, depending on how close you already are to your limits.
Your score also factors in how long you've had credit accounts open. Closing an old card removes years of account history from your active record. The impact is smaller if you have other old accounts, but if that card was your oldest account, the loss can be noticeable.
A third factor is the total number of accounts you have. Closing one account when you have five is less damaging than closing one when you have two. Credit scoring models assume that people with more accounts have more experience managing credit responsibly.
When closing a card does the least damage
Close a card when you have several other cards open, when the card you're closing is newer than your other cards, and when you're not applying for new credit. The best scenario is closing a card you opened within the last two years while you have at least three other cards open and your utilization across all cards is below 30 percent.
If you have only one or two cards total, or if the card you want to close is your oldest account, consider keeping it open instead — even if you never use it. The score hit from closing it will likely outweigh any benefit from closing it.
Timing matters too. If you're planning to apply for a mortgage, car loan, or credit card in the next six months, close the card after you've been approved, not before. Lenders pull your credit report during the application process, and a recent account closure can make your score look worse than it actually is.
How to close a credit card without mistakes
Before you call or go online to request closure, pay off any remaining balance on the card. You cannot close a card with an outstanding balance, and even if the issuer allowed it, you'd still owe the debt — it would just be harder to pay.
Next, check your account for any recurring charges — subscriptions, insurance payments, or automatic bill payments that might be tied to that card. Move them to a different card or payment method before you close the account. If a charge tries to go through after closure, it will be declined, and you could miss a payment without realizing it.
Then contact the card issuer. Most companies let you request closure through their website or mobile app, but calling is safer because you get a confirmation number and a record of the conversation. When you call, ask the representative to confirm that the account is being closed at your request and that there is no balance remaining. Ask them to send you written confirmation by mail or email.
After closure, keep checking your credit report for the next few months. The card should show as "closed by consumer" rather than "closed by issuer" — that distinction matters to credit scoring models. If it shows the wrong status, contact the issuer and ask them to correct it.
Alternatives to closing a card
If you want to stop using a card but don't want the score hit, leave it open with a zero balance. Put one small recurring charge on it — a streaming service or a gas station fill-up — and set up automatic payment from your bank account. This keeps the account active, preserves your credit history, and maintains your available credit without requiring you to carry a balance or pay interest.
If the card has an annual fee and you don't want to pay it, call the issuer and ask them to waive it or downgrade you to a no-fee version of the same card. Many issuers will do this to keep the account open. If they won't, then closing the card makes sense — the fee cost over time outweighs the score damage.
If the card has a high interest rate or terms you don't like, you don't have to close it to stop using it. You can simply switch to a different card for new purchases and let the old one sit. This is especially useful if the old card is one of your oldest accounts.
How long the score damage lasts
The immediate drop from closing a card usually happens within a few days to a week, as the change appears on your credit report. The size of the drop depends on your overall credit profile — someone with a score of 750 might drop 20 to 40 points, while someone with a score of 650 might drop 50 to 100 points.
The good news is that the damage is temporary. If you keep your other accounts in good standing — paying on time, keeping balances low — your score usually recovers within three to six months. The longer you wait after closing the card, the less impact it has on your score, because credit scoring models weight recent changes more heavily than old ones.
The account itself will stay on your credit report for up to 10 years after closure, even though it's no longer active. During that time, it still contributes to your credit history length, so the long-term damage is usually minimal.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, usually. Closing a card reduces your available credit and may shorten your average account age, both of which lower your score. The damage is typically temporary — your score usually recovers within three to six months if you keep other accounts in good standing. The impact is smaller if you have multiple cards and the one you're closing is newer.
Should I close a credit card before or after applying for a loan?
Close it after you've been approved. Lenders pull your credit during the application process, and a recent account closure can lower your score at the exact moment they're reviewing it. Wait until after you've been approved and the loan has been funded before you close any cards.
What if I close a card and then want to reopen it?
You can usually reopen a closed account by calling the issuer, but they're not required to let you. Some issuers will reopen an account within a certain window (often 30 to 60 days) if you ask. After that window, you'd have to apply for a new card, which would be treated as a new account with a new opening date.
Is it better to close a card or leave it open with a zero balance?
Leaving it open with a zero balance is almost always better for your credit score. It preserves your available credit, keeps your account history active, and avoids the score drop that comes with closure. The only reason to close it is if it has an annual fee you can't get waived or terms you genuinely can't live with.
How do I know if a card is closed?
Check your credit report — the card will show as "closed" with a status of "closed by consumer" if you requested it. You can also log into your account online or call the issuer to confirm. A closed card will no longer appear in your available credit total, though it will still show in your credit history.