The basic steps to close a credit card account

Call the customer service number on the back of your card and tell them you want to close the account. Have your card number ready. The representative will confirm your identity, ask why you're closing it (they may offer incentives to stay), and then process the closure. Some issuers also let you close an account through their website or mobile app, though a phone call creates a record of the request.

Before you call, pay off any remaining balance. Most issuers won't close an account with an outstanding balance, and if they do, you'll still owe the debt. After closure, you'll receive a final statement showing a zero balance, and the account will appear as "closed by consumer" on your credit report.

The entire process usually takes one phone call, though it can take a few days for the closure to show up in your account and on your credit report. Keep your final statement as proof the account is closed.

Key Takeaways

  • Pay off your full balance before calling to close the account, because most issuers won't process a closure if you owe money.
  • Closing a card can lower your credit score temporarily because it reduces your total available credit and may raise your credit utilization ratio.
  • Closed accounts stay on your credit report for seven to ten years, so closing a card does not erase your history with that issuer.
  • If you want to keep the account open but stop using it, you can cut up the card and store the account number instead of closing it.

How closing a card affects your credit score

Closing a credit card account can lower your credit score, usually by 10 to 50 points, depending on how much credit you have available and how much you're currently using. The two main reasons are credit utilization and average age of accounts.

Credit utilization is the percentage of your total credit limit that you're using across all your cards. If you have two cards with $5,000 limits each and you're carrying a $2,000 balance, your utilization is 20 percent. If you close one card, your total available credit drops to $5,000, and your utilization jumps to 40 percent — even though you haven't charged anything new. Credit scoring models penalize high utilization, so the score drop is immediate.

The second factor is the age of your accounts. Closing an older card removes it from your average account age calculation, which can lower your score slightly. A newer card closing has less impact than an older one.

The score drop is usually temporary. As you pay down balances and build new credit history, the impact fades over several months. Closing a card you've had for many years or closing multiple cards at once will have a larger effect than closing a newer card.

When to close a card versus keeping it open

Close a card if you're paying an annual fee you don't use, if the card has a high interest rate you're tempted to use, or if you're trying to simplify your finances. You should also close a card if it's a store card you opened for a one-time discount and no longer need.

Keep a card open if it has no annual fee, if it's one of your oldest accounts, or if closing it would significantly raise your credit utilization. You can keep a card open without using it — just cut up the physical card or store the number somewhere safe so you're not tempted to charge on it. Issuers sometimes close inactive accounts after 12 to 24 months of no activity, but many will keep them open indefinitely if you use them occasionally.

If you're closing a card because of high interest rates or overspending, closing it is the right move. If you're closing it purely to improve your credit score, keeping it open and unused is usually better for your score than closing it.

What happens to your balance if you close the account

You must pay off your balance before the issuer will close the account. If you have a remaining balance when you call, the representative will tell you to pay it first and call back, or they may refuse to process the closure.

If you somehow close an account with an outstanding balance — which is rare — you still owe the debt. The issuer will continue to charge interest and may send your account to collections if you don't pay. Closing the account does not erase what you owe.

If you have a promotional interest rate (like 0% APR for 12 months), closing the account ends the promotion. Any remaining balance will revert to the regular interest rate. For this reason, it's usually better to wait until a promotional period ends and the balance is paid off before closing.

Closing a card with a rewards balance or points

Check your rewards balance before you close the account. Most issuers let you redeem points or cash-back rewards after closure, but the window to do so varies. Some programs let you redeem for up to a year after closure; others require redemption before the account closes.

Call the issuer and ask about their specific policy. If you have a large rewards balance, redeem it before you close the account to avoid losing it. Some issuers will let you transfer points to a co-branded partner (like an airline or hotel), so ask whether that option exists if you want to preserve the value of your rewards.

Once you close the account, you lose access to any future rewards earning on that card, so use up any remaining points first.

How long a closed account stays on your credit report

A closed account stays on your credit report for seven to ten years, depending on whether it was in good standing when you closed it. An account you closed with a zero balance and no missed payments will stay for seven years. An account with a history of late payments or that went to collections will also stay for seven years from the date of the last missed payment, but the negative marks fade in impact over time.

The account appearing on your report doesn't hurt you after a few years — the impact of the closure itself fades after six to twelve months. What matters more is the payment history associated with the account. If you closed it in good standing, lenders see that as a positive sign of responsible credit use.

You can't remove a closed account from your credit report before the seven-year mark unless there's an error. If the issuer reported the closure incorrectly (for example, marking it as closed by the issuer when you closed it), you can dispute it with the credit bureaus.

Closing a joint account or authorized user card

If you're a joint account holder, both account holders must agree to close the account, or the other person can request closure on their own. If you're an authorized user on someone else's account, you can't close it — only the primary account holder can. You can ask the primary holder to remove you as an authorized user, which stops you from using the card but keeps the account open.

If you're going through a divorce or separation and the account is joint, contact the issuer about your options. Some issuers will convert a joint account to a single-holder account if both parties agree, which lets one person keep the account while the other's liability ends. Others require closure and opening a new account in one person's name.

Frequently Asked Questions

Will closing a credit card hurt my credit score?

Yes, usually by 10 to 50 points temporarily. The main reason is that closing a card reduces your total available credit, which can raise your credit utilization ratio. The impact fades over several months as you build new credit history. Closing an older card or closing multiple cards at once has a larger effect than closing a newer card.

Can I reopen a closed credit card account?

It depends on the issuer and how long ago you closed it. Some issuers will reopen an account within 30 to 60 days of closure if you call and request it. After that window, you'll usually have to open a new account, which means a new credit inquiry and a new account age. Call the issuer to ask their specific policy.

What if the issuer won't close my account?

If you've paid off the balance and the issuer still refuses, ask to speak with a supervisor. Issuers are required to close accounts when you request it. If they continue to refuse, file a complaint with the Consumer Financial Protection Bureau (CFPB), which oversees credit card issuers. Document the date and time of your call and the name of the representative you spoke with.

Should I close old credit cards or keep them open?

Keeping old cards open is usually better for your credit score because they contribute to your average account age and available credit. If the card has no annual fee, there's no reason to close it. You can keep it open without using it by storing the card number somewhere safe and cutting up the physical card.

Do I need to close a card in person or by mail?

No. A phone call to the customer service number on the back of your card is the fastest and most reliable way to close an account. Some issuers also offer closure through their website or app. Sending a letter is slower and harder to track. Always keep your final statement as proof the account was closed.