The basic steps to close a credit card
To close a credit card, call the customer service number on the back of your card, confirm you want to close the account, and pay off any remaining balance. The card issuer will process the closure, usually within a few business days. You should receive written confirmation by mail.
Before you call, pay down your balance as much as possible. You cannot close an account with an outstanding balance — the issuer will keep it open until you pay it off, and you will continue to owe interest. Some people pay the full balance before calling; others pay it down and finish the remaining amount after closure is confirmed.
After closure, your card will stop working when ready, but the account will remain on your credit report for up to ten years. This is normal and does not harm your credit further — the damage from closing happens at the moment you close it, not over time.
Key Takeaways
- Call the customer service number on your card and tell the representative you want to close the account; they will walk you through the process.
- Pay off your full balance before closing, because the issuer will not close an account with money owed and you will keep paying interest.
- Closing a card lowers your available credit and may raise your credit utilization ratio, which can temporarily lower your credit score.
- Request written confirmation of the closure and keep it for your records in case disputes arise later.
- Check your credit report a few weeks after closure to confirm the account shows as closed and the balance shows as zero.
What happens to your credit score when you close a card
Closing a credit card typically lowers your credit score in the short term because it reduces your total available credit. If you had a $5,000 limit and you close that card, your available credit drops by $5,000. If you still carry balances on other cards, your credit utilization ratio — the percentage of your total credit limit that you are using — goes up, and higher utilization hurts your score.
The score impact is usually temporary. As you pay down other balances over the next few months, your utilization improves and your score recovers. The closed account itself will remain on your report and continue to help your score if it had a good payment history, because payment history accounts for 35 percent of most credit scores.
If you are closing the card because you want to reduce temptation to overspend, that benefit outweighs the temporary score dip. If you are closing it purely to improve your score, keeping the account open and unused is the better move.
Reasons to close a card before you do
Closing a card makes sense if you are paying an annual fee you do not want, if the card offers rewards you do not use, or if you are trying to simplify your wallet. It also makes sense if you are closing the account because you suspect fraud or identity theft — in that case, call when ready and ask the issuer to flag the account.
Closing a card does not make sense if your only goal is to raise your credit score. Keeping old accounts open, even unused, helps your score because it preserves your available credit and your average account age. If the card has no annual fee, the cost of keeping it open is zero.
If you are closing a card because you are struggling with debt, closing it will not stop the debt from existing. You will still owe the balance, and closing the account does not erase it. In that situation, focus on paying down the balance rather than closing the card.
How to handle a balance before closing
If your card has a balance, you have two options: pay it off before you call to close, or pay it off after closure is confirmed. Paying it off before you call is simpler because the account closes when ready after the issuer confirms the balance is zero. Paying it off after closure means the account stays technically open until the balance hits zero, even though you have requested closure.
Some people use a balance transfer to move the debt to a different card with a lower interest rate before closing the original card. This makes sense if the new card has a 0 percent introductory rate and you can pay off the balance during that period. If you are just moving the debt around without a plan to pay it, closing the original card does not help.
If you have a very small balance — under $25 — some issuers will close the account and forgive the balance, though this is not may provide. It never hurts to ask, but do not count on it. The safest approach is to pay the full balance yourself.
Getting written confirmation of closure
When you call to close your account, the representative will give you a confirmation number. Write it down. Then ask the representative to mail you written confirmation that the account is closed and the balance is zero. Some issuers send this automatically; others only send it if you request it.
Keep this confirmation letter for at least a year. If the issuer later reports the account as still open, or if a debt collector contacts you about a balance on a closed account, you will have proof that you closed it and paid it off. This is especially important if you closed the account because of fraud.
If you do not receive written confirmation within two weeks, call back and ask for it again. Provide the confirmation number from your first call so the representative can pull up the record.
Checking your credit report after closure
A few weeks after you close the account, check your credit report to confirm the closure was processed correctly. You can get a free copy of your report from each of the three major credit bureaus — Equifax, Experian, and TransUnion — once per year at annualcreditreport.com. You can also pull your report more often through your credit card issuer or a credit monitoring service.
Look for the closed account in your report. It should show a status of "closed" or "closed by consumer" and a balance of zero. If it shows as still open, or if it shows a balance, contact the issuer and ask them to correct the report. Keep your written confirmation letter handy when you call.
If the account appears on your report with errors — for example, if it shows a late payment that you did not make — you can dispute it with the credit bureau. The bureau has 30 days to investigate and correct the error.
What to do if the issuer will not close your account
In rare cases, an issuer may refuse to close an account if you have a balance, if there is a fraud investigation pending, or if the account is in default. If the issuer tells you they cannot close the account, ask why. Get the specific reason in writing if possible.
If the reason is a balance, pay it off and call back to close. If the reason is a fraud investigation or default, ask how long the hold will last and when you can close the account. If the issuer is being unreasonable, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), which oversees credit card issuers.
You can also contact your state's attorney general office or banking regulator if you believe the issuer is breaking the law. These agencies have the power to investigate and force compliance.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, but usually only temporarily. Your score will dip because your available credit decreases and your credit utilization ratio may increase. The impact is typically largest in the first month and recovers over the next few months as you pay down other balances. If the card had a good payment history, it will continue to help your score even after closure.
Can I close a credit card with a balance on it?
No. The issuer will not close the account until the balance is zero. You can request closure, but the account will remain open and you will continue to owe interest until you pay off the debt. Pay the balance first, then call to close.
What happens to my rewards points when I close a card?
This depends on the card issuer's policy. Some issuers let you keep your points and redeem them after closure; others cancel your points when you close the account. Check your card's terms or call customer service before you close to find out what will happen to your points. If you have a large balance, redeem your points before you close.
How long does it take to close a credit card?
The closure is usually processed within a few business days of your call. You will receive written confirmation by mail within two to three weeks. The account will stop working when ready, but it may take up to 30 days for the closure to appear on your credit report.
Do I need to cut up my card after I close it?
Yes. Cut the card into pieces or shred it so it cannot be used. Even though the account is closed and the card will not work, destroying the physical card prevents someone from finding it and attempting to use it, which could cause confusion or fraud.