The basic steps to close a credit 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 "manage account" option. Most card issuers let you close an account by phone in under ten minutes. Have your card number and account details ready. The issuer will confirm your request and usually send written confirmation by mail within a few days.

Before you call, pay off any remaining balance. You cannot close an account with an outstanding balance — the issuer will refuse. If you have a promotional rate or 0% offer still running, closing the account ends that offer immediately, and any remaining balance reverts to the regular interest rate.

After you close the account, the card issuer will report it to the credit bureaus as "closed by consumer." This stays on your credit report for up to ten years, but it does not hurt your score the way a late payment or charge-off does.

Key Takeaways

  • Pay off your full balance before calling to close — most issuers will not close an account with money owed.
  • Closing a card reduces your total available credit, which can raise your credit utilization ratio and lower your score temporarily.
  • The account will show as "closed by consumer" on your credit report, which is less damaging than accounts closed by the issuer.
  • If you want to preserve your credit history, you can keep the account open and unused instead of closing it.

Why closing a card can affect your credit score

Your credit score depends partly on credit utilization — the percentage of your available credit that you are currently using. If you have $5,000 in total credit limits across all your cards and you carry a $1,000 balance, your utilization is 20 percent. When you close a card, your total available credit shrinks, which raises your utilization ratio even if your actual balance stays the same.

For example: you have two cards with $5,000 limits each ($10,000 total available). You carry a $2,000 balance. Your utilization is 20 percent. If you close one card, your available credit drops to $5,000, and your utilization jumps to 40 percent — even though you still owe $2,000. This change can lower your score by a few points.

The impact is usually temporary. Your score typically recovers within a few months if you keep paying on time and do not increase your debt. The damage is smaller if you close a card with a high limit that you were not using much.

When to close a card and when to keep it open

Close a card if you are paying an annual fee and you do not use the card or its rewards. Close it if you are trying to reduce the temptation to overspend, or if you have too many accounts to manage. Close it if the issuer is offering you nothing you need.

Keep a card open if it has no annual fee, even if you do not use it. An open account with a zero balance actually helps your credit score — it shows available credit you are not using, which lowers your utilization ratio. Keeping old accounts open also preserves your credit history length, which makes up about 15 percent of your score.

If you want to close a card but worry about the score impact, close it after paying down other balances. If you can lower your utilization on your remaining cards first, closing one card will do less damage.

What happens to rewards points and cash back

Redeem any rewards or cash back before you close the account. Most issuers let you cash out or transfer points right up until the account closes, but policies vary. Some cards let you redeem points for months after closing; others void unused rewards immediately. Check your card's terms or call customer service to confirm the deadline.

If you have a sign-up bonus you have not met yet, closing the account before you hit the spending requirement means you lose the bonus. If you have already earned it, you keep it — the bonus is yours once you meet the terms.

Authorized users and joint accounts

If someone else is an authorized user on your account, closing it will remove their access to the card. Notify them before you close so they are not surprised when the card stops working. Authorized users can still see the closed account on their credit report, but they cannot use it.

If the account is a joint account — meaning both of you are legally responsible for the debt — both account holders usually have to agree to close it. Some issuers require both signatures on the closure request. Check your account documents or call to confirm who has authority to close.

After you close the account

Destroy the physical card by cutting it up or shredding it. Do not throw it in the trash whole. If the account has automatic payments set up (like a subscription or utility bill), change the payment method to a different card before closing, or those payments will fail and you may face late fees.

Keep the confirmation letter the issuer sends you. It proves the account was closed by you, not by the issuer due to non-payment or fraud. Save it for your records in case there is ever a dispute.

Check your credit report a few weeks after closing to make sure the account shows as "closed by consumer." You can get a free credit report once per year from each of the three bureaus at annualcreditreport.com. If the account shows as closed by the issuer instead, contact the issuer and ask them to correct it.

Alternatives to closing if you want to reduce your balance

If your main goal is to lower your credit utilization, you do not have to close the card. You can simply pay down the balance. Paying off debt lowers your utilization immediately and helps your score without the downside of losing available credit.

If you want to stop using a card but keep the account open, put it away and do not charge anything new to it. Many people keep old cards in a drawer for emergencies or to preserve credit history. As long as there is no annual fee, there is no cost to leaving it open.

If you are closing because you have too many cards to manage, you could consolidate instead — transfer balances to one or two cards you actually use, then close the others. This gives you the same simplification with less impact on your credit if you do it strategically.

Frequently Asked Questions

Will closing a credit card hurt my credit score?

Closing a card can lower your score temporarily because it reduces your available credit and raises your utilization ratio. The impact is usually small — a few points — and temporary if you keep paying on time. Closing a card is less damaging than missing a payment or having an account closed by the issuer.

Can I close a credit card with a balance on it?

No. You must pay off the full balance before the issuer will close the account. If you try to close with a balance, they will refuse and ask you to pay first. You can still use the card to make payments after you request closure.

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

Redeem your points before closing. Most issuers let you cash them out or transfer them right up until the account closes, but some void unused rewards immediately after closure. Call customer service to confirm your card's policy and the deadline for redemption.

Should I close old credit cards or keep them open?

Keep old cards open if they have no annual fee. An open account with a zero balance helps your credit score by lowering your utilization ratio and preserving your credit history. Close only if there is an annual fee you do not want to pay or if you need to reduce temptation to overspend.

How long does it take to close a credit card?

The call usually takes under ten minutes. The issuer will confirm your request immediately, and you will receive written confirmation by mail within a few days. The account will show as closed on your credit report within one to two billing cycles.