The difference between deactivating and closing a credit card
Deactivating means your card stops working for new purchases, but the account stays open. Your issuer may do this automatically if you haven't used the card in months, or you can request it. You still owe any balance, and the account appears on your credit report.
Closing means you end the account entirely. You must pay off any balance first, then contact your issuer to formally close it. Once closed, you cannot use the card and the account no longer generates new activity, though it remains on your credit report for seven years.
Most people who want to stop using a card actually want deactivation — they keep the account open to preserve credit history and available credit. Closing is permanent and can lower your credit score because it reduces the total credit available to you.
Key Takeaways
- Deactivating stops the card from working but keeps the account open; closing ends the account entirely and requires you to pay off the balance first.
- Call the number on the back of your card or log into your online account to request deactivation — most issuers can do it in minutes.
- Closing a card can lower your credit score because it reduces your total available credit, even if you pay off the balance.
- If you close a card, the account stays on your credit report for seven years, so the damage to your score fades gradually over time.
How to deactivate your card without closing the account
Call the customer service number on the back of your card. Tell the representative you want to deactivate the card. Most issuers will do this immediately over the phone — you do not need to mail anything or visit a branch.
Some issuers also let you deactivate through their mobile app or website. Log in, find the card settings or account management section, and look for an option to lock, freeze, or deactivate the card. The exact wording varies by bank.
After deactivation, the card will be declined if you try to use it in a store or online. The account itself remains active, so you can reactivate it later if you change your mind. Any recurring charges linked to that card will fail, so update your payment methods for subscriptions before you deactivate.
How to close a credit card account permanently
Before you close the account, pay off the entire balance. You cannot close an account with an outstanding balance, and even if the issuer allows it, you will still owe the debt.
Call the customer service number on the back of your card. Tell the representative you want to close the account. They will confirm your balance is zero, ask why you are closing it (this is optional to answer), and process the closure. Ask them to send you written confirmation by mail or email.
After closure, the account no longer appears as active on your credit report, but it remains visible as a closed account for seven years. During that time, it still affects your credit score — specifically, it reduces the total credit available to you, which can lower your score even though you are not using the card.
Why closing a card can hurt 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. If you close a card with a $5,000 limit, you lose that $5,000 from your available credit. If you carry balances on other cards, your utilization ratio goes up, and your score drops.
Closing a card also shortens your average account age if it was one of your older accounts. Credit scoring models reward long account history, so closing an old card can lower your score more than closing a new one.
If your only reason for closing is that you do not use the card, deactivation is usually the better choice. You keep the account open, preserve your available credit, and can reactivate the card if you need it later.
What to do with a card you want to stop using
If you want to keep the account open but prevent accidental charges, deactivate the card and store it safely at home. You can still make online or phone purchases by providing the card number manually if needed.
If you are closing the account because of high fees, call and ask if the issuer will waive them or switch you to a different card product with lower costs. Many issuers will negotiate rather than lose a customer.
If you are closing because of fraud or unauthorized charges, report it to the issuer immediately. They will investigate and may issue you a new card with a different number while keeping the account open. Do not close the account yourself until the dispute is resolved.
What happens to your balance after deactivation or closure
Deactivating the card does not affect your balance. You still owe whatever you charged, and you must continue making payments. The issuer will send you a bill each month as usual.
If you close the account, you must pay off the balance before closure. If any balance remains after closure, you still owe it — closing does not erase debt. The issuer will continue to report the debt to credit bureaus and may pursue collection if you do not pay.
If you have a promotional rate (such as 0% APR for 12 months), closing the account may end the promotion early. Check your terms before you close.
Frequently Asked Questions
Can I reactivate a card after I deactivate it?
Yes. Call customer service and ask them to reactivate it. Most issuers will do this immediately. If you closed the account instead of deactivating it, you cannot reactivate it — you would have to open a new account.
Will deactivating my card hurt my credit score?
No. Deactivating keeps the account open and active, so it does not change your credit utilization or account history. Your score should not be affected.
What if I have recurring charges on the card I want to deactivate?
Update your payment method for each subscription or automatic payment before you deactivate. The charges will fail if you deactivate first, and the merchant may suspend your service or charge a late fee.
How long does it take to close a credit card?
The closure is usually processed immediately over the phone, but it may take a few days to appear on your credit report. Ask the issuer for written confirmation and keep it for your records.
Can I close a credit card with a balance?
Most issuers will not close an account with an outstanding balance. You must pay it off first. If you stop paying after closure, the debt does not disappear — the issuer can still pursue collection.