The basic steps to close a credit card
To close a credit card, call the customer service number on the back of your card or log into your online account and request closure. The card issuer will confirm your request, often asking why you want to close it. Pay off any remaining balance before or at the time of closure — most issuers will not close an account with an outstanding balance. Once closed, ask the issuer to send you written confirmation that the account is closed at your request, not due to non-payment or default. Keep this letter for your records.
The entire process usually takes one phone call, though the account may take 7 to 10 business days to fully close in the issuer's system. During that time, the card remains active, so do not use it. If you have automatic payments set to that card, move them to another payment method before you call.
Key Takeaways
- Pay off your full balance before closing, because most issuers will not close accounts with money owed.
- Call the number on the back of your card or use your online account to request closure, and ask for written confirmation.
- Closing a card can lower your credit score temporarily because it reduces your total available credit, but the effect usually fades within a few months.
- If you have been with the card issuer for years, closing an old account can hurt your score more than closing a newer one.
- Closing a card does not erase its history — the account will still appear on your credit report for seven years.
Why closing a card affects your credit score
Your credit score depends partly on your credit utilization ratio — the amount of credit you are using divided by the total credit available to you. When you close a card, you lose that available credit, which can raise your utilization ratio even if you do not change how much you spend. For example, if you have two cards with $5,000 limits each and 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, which can lower your score.
The impact is usually temporary. Most people see the score recover within three to six months, especially if they keep other accounts in good standing and do not miss payments. Closing a very old card hurts more than closing a new one, because age of accounts also affects your score. If the card you want to close is your oldest account, consider keeping it open and unused instead.
What happens to rewards and cash back when you close
Most card issuers let you keep rewards points or cash back that you have already earned, even after closure. However, some cards expire unused rewards after a set period — often 12 months of inactivity. If you have a large balance of rewards, redeem them before you close the account. Check your card's terms or call customer service to confirm the policy.
Any rewards you earn after closure are forfeited. If you have pending transactions that have not yet posted, those rewards may or may not count depending on the issuer's rules. Redeem everything you have earned before the account officially closes.
Timing: when to close a card and when to wait
Avoid closing a card right before you plan to borrow money — applying for a mortgage, auto loan, or new credit card within a few months of closure can hurt your chances of approval. Lenders see the recent closure as a red flag, and the temporary dip in your credit score works against you. If you are planning a major purchase, close the card at least six months beforehand.
Do not close a card in response to a single missed payment or a temporary financial setback. Closing it does not erase the missed payment from your credit report, and it removes available credit you may need later. If you are struggling with debt, look into a balance transfer or a debt management plan instead.
Keeping a card open without using it
If you want to keep the card open but stop using it, you can simply put it away. The account will remain active as long as you do not close it and the issuer does not close it for inactivity. Some issuers close accounts that show no activity for 12 months or longer, though they usually send a notice first. To prevent this, use the card for a small purchase every few months and pay it off immediately.
Keeping old accounts open protects your credit score by maintaining your available credit and your average account age. This is often a better choice than closing, especially if the card has no annual fee.
Handling annual fees and unwanted cards
If your card charges an annual fee and you do not use it, call and ask if the issuer will waive the fee or downgrade you to a no-fee version of the same card. Many issuers will do this to keep your account open. If they refuse and you decide to close, that is a legitimate reason — you are not paying for a service you do not use.
If you received a card you never wanted or opened one by mistake, close it as soon as possible. The sooner you close it, the less impact it has on your credit score. There is no penalty for closing a card you never activated or used.
What to do after closure
After your card is closed, check your credit report within 30 days to confirm the closure is recorded correctly. You can get a free credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — once per year at annualcreditreport.com. The closed account will remain on your report for seven years, but it will show a zero balance and a status of "closed by consumer."
Keep the written confirmation of closure for your records. If the issuer reports the account incorrectly — for example, as "closed by issuer" instead of "closed by consumer" — you can dispute it with the credit bureau and provide your confirmation letter as proof.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, but usually only temporarily. Your score may drop 5 to 50 points depending on how old the card is and how much credit you have available. The impact fades within a few months if you keep other accounts in good standing and pay on time.
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 what you owe first. After you pay, you can request closure.
What happens to my rewards points when I close the card?
You usually keep rewards you have already earned, but you cannot earn new rewards after closure. Redeem your points before the account closes. Some cards expire unused rewards after 12 months, so check your card's terms.
Should I close old credit cards or keep them open?
Keeping old cards open is usually better for your credit score because it preserves your available credit and your account history. If the card has no annual fee, there is no reason to close it. If it has a fee, call and ask if the issuer will waive it or move you to a no-fee card.
How long does it take to close a credit card?
The phone call or online request takes minutes, but the account may take 7 to 10 business days to fully close in the issuer's system. Ask for written confirmation so you have proof of when you requested closure.