Closing a credit card will usually lower your credit score, sometimes by 10 to 50 points, because it shrinks the total credit available to you and may raise the percentage of credit you're using.
The damage depends on how much credit you had available before you closed the card, how much you're currently using on other cards, and how long you've held the card. A card you've had for years matters more to your score than a new one. If you close a card with a high limit and you're already carrying balances on other cards, the drop tends to be steeper.
The score hit is usually temporary. As long as you keep paying other accounts on time and don't run up new balances, the damage typically fades within a few months to a year. But the closed account itself stays on your credit report for up to 10 years, so the long-term effect is smaller than the immediate one.
Key Takeaways
- Closing a card reduces your available credit, which can raise your credit utilization ratio — the percentage of your total credit limit you're actually using — and lower your score.
- The score drop is usually temporary and fades as you pay down other balances, but the closed account remains visible on your report for years.
- Closing a card you've held for a long time has a bigger impact than closing a new card, because age of accounts matters to your score.
- If you want to close a card but protect your score, paying down balances on other cards first can offset the damage.
- Closing a card does not erase late payments or other negative marks already on your report — those stay for seven years regardless.
Why Closing a Card Lowers Your Score
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.
Available credit shrinks. If you close a card with a $5,000 limit and you have $15,000 in total available credit across all your cards, you now have $10,000 available. If you're carrying a $3,000 balance on other cards, your utilization ratio just jumped from 20% to 30%. Credit bureaus see higher utilization as riskier, so your score drops.
Account age may drop. If the card you're closing is one of your oldest accounts, closing it can lower the average age of your credit history. Older accounts signal stability, so losing that history costs points.
Credit mix changes slightly. If the card you're closing is your only credit card and you only have installment loans (car loans, student loans) otherwise, closing it removes variety from your credit profile. This matters less than the other two factors, but it does count.
How Much Your Score Will Drop
There is no fixed number — the drop depends on your specific situation. Someone with a 750 score and low balances might lose 10 to 15 points. Someone with a 650 score and high balances across multiple cards might lose 40 to 50 points or more.
The biggest drops happen when you close a high-limit card while carrying balances on other cards. The smallest drops happen when you close a low-limit card, you have very little debt elsewhere, or you've only had the card for a short time.
If you're planning to apply for a mortgage, car loan, or other major credit in the next few months, closing a card right before that application can work against you. Lenders pull your score at the moment you apply, so timing matters.
How Long the Score Drop Lasts
The immediate hit — the drop in available credit and the change in utilization ratio — usually fades within three to six months if you don't add new debt. As you pay down balances on your remaining cards, your utilization ratio improves, and your score recovers.
The closed account itself stays on your credit report for up to 10 years (seven years if it was closed due to delinquency). During that time, it still counts toward your credit history length, but with less weight than an active account. So the long-term damage is smaller than the immediate damage.
If you closed the card in good standing — no missed payments, no charge-offs — the account will show as "closed by consumer" on your report. This looks better than "closed by creditor" and does not damage your score the way a delinquency does.
Steps to Minimize the Score Hit
If you've decided to close a card, you can reduce the damage by timing it carefully and managing your other balances.
Pay down balances first. Before you close the card, pay down what you owe on your other cards. If you can get your utilization ratio below 30% across all remaining cards, the loss of available credit from closing one card will hurt less. For example, if you're carrying $6,000 across three cards with a combined $20,000 limit (30% utilization), and you pay that down to $3,000 before closing a card, you're starting from a stronger position.
Close a newer card, not an old one. If you have multiple cards you don't use, close the one you've had the shortest time. Closing a card you opened last year costs less than closing one you've had for 10 years.
Close a low-limit card. If you have a choice, close a card with a smaller credit limit. The impact on your available credit is smaller, so the utilization ratio doesn't jump as much.
Wait if you're about to apply for credit. If you're planning to apply for a mortgage, auto loan, or other major credit within the next three to six months, wait until after that application to close the card. The timing of the score drop matters less once you've already been approved.
What Closing a Card Does Not Do
Closing a card does not erase negative marks from your credit report. If you missed payments on that card, those late payments stay on your report for seven years from the date of the first missed payment. Closing the card does not make them disappear.
Closing a card also does not stop you from being liable for any balance you still owe. If you close a card with an outstanding balance, you still owe that money, and the card issuer can still report it to the credit bureaus and pursue collection if you don't pay.
Closing a card does not affect your payment history on other accounts. If you have other credit cards or loans in good standing, those accounts and their payment records remain unchanged.
Alternatives to Closing a Card
If your main reason for closing a card is to reduce temptation to spend, consider keeping it open but not using it. An open account with a zero balance helps your credit score more than a closed one, because it keeps your available credit high and your utilization ratio low.
If you're closing a card because of an annual fee, call the issuer and ask if they can waive it or move you to a no-fee version of the same card. Many issuers will do this to keep your account open.
If you're closing a card because you want to simplify your finances, you can keep it open but put it in a drawer. You don't have to use it, but the account stays active and helps your score.
Frequently Asked Questions
Will closing a credit card hurt my credit score immediately?
Yes. The score drop usually happens within one or two billing cycles after you close the card, because the credit bureau updates your available credit and utilization ratio. The exact timing depends on when the card issuer reports the closure to the bureaus.
Can I reopen a credit card after I close it?
It depends on the issuer and how long ago you closed it. Some issuers will reopen a recently closed account if you call and ask. Others treat a closed account as a new application if you want to reopen it. Call the issuer directly to ask — there's no harm in requesting.
Does closing a card affect my ability to get approved for new credit?
It can, depending on timing and your overall credit profile. A lower score makes approval harder. If you're planning to apply for a mortgage or car loan soon, closing a card right before that application can work against you. Wait until after you've been approved if possible.
What if I close a card and my score drops more than I expected?
The drop is usually temporary. Keep paying all your other accounts on time and avoid taking on new debt. Your score should recover within a few months to a year as your utilization ratio improves. If the drop is severe and unexpected, you can check your credit report at annualcreditreport.com to make sure there are no errors.
Should I close old credit cards I don't use?
Usually no. Keeping old cards open helps your score because they add to your available credit and they show a longer credit history. If you're not using them, just leave them open with a zero balance. Close them only if there's a fee you can't avoid or if you have a specific reason to reduce the number of accounts you hold.