The basic steps to close a credit card
To close a credit card account, call the customer service number on the back of your card, tell the representative you want to close the account, and ask them to confirm the closure in writing. That phone call is the only step you must take — the card issuer handles the rest. Before you call, pay off any remaining balance, because most issuers will not close an account with an outstanding debt.
After you hang up, the issuer will mark your account as closed on your credit report. This happens within days, though it may take a few weeks to appear in the reports that credit bureaus see. Write down the date you called, the representative's name, and the confirmation number they give you. When the written confirmation arrives by mail, keep it with your financial records.
Do not cut up the card when ready. Wait until you receive written confirmation that the account is closed. If something goes wrong — if the issuer claims you never called, or if the account stays open — you will need proof of the closure request.
Key Takeaways
- Call the customer service number on your card and request closure; the issuer will handle the paperwork and send written confirmation by mail.
- Pay off your full balance before closing, because most issuers will not close accounts with unpaid debt.
- Closing a card reduces your available credit, which can raise your credit utilization ratio and temporarily lower your credit score.
- Closing an old account removes its payment history from your credit report after seven years, which can hurt your score more than closing a newer card.
- Keep the written confirmation of closure for your records in case the issuer later claims the account was never closed.
Why closing a card affects your credit score
Closing a credit card lowers your available credit — the total amount you can borrow across all your cards. When available credit shrinks, your credit utilization ratio (the percentage of your total credit limit you are actually using) goes up, even if you have not charged anything new. Credit bureaus treat higher utilization as higher risk, so your score typically drops by a small amount.
The damage is usually temporary. If you have other cards with low balances and your payment history is clean, the score drop is often 5 to 10 points and recovers within a few months. If you are carrying high balances on your other cards, the drop can be larger because your utilization ratio is already high.
The bigger long-term hit comes from closing an old account. Credit bureaus factor in the age of your accounts — older accounts signal that you have managed credit responsibly over time. When you close an old card, that account eventually stops appearing on your credit report, and your average account age drops. This can lower your score more than closing a newer card would.
When to close a card and when to keep it open
Close a card if you are paying an annual fee you do not want to pay, if the card has a high interest rate and you are tempted to use it, or if you have too many accounts to manage. You should also close a card if it has been compromised or if you suspect fraud.
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 because it lowers your utilization ratio. Issuers sometimes close inactive accounts on their own after 12 to 24 months of no activity, so if you want to keep the account open, use it occasionally — even a small purchase every few months is enough.
If a card has an annual fee but also has rewards or benefits you value, call the issuer and ask if they will waive the fee or downgrade you to a no-fee version of the same card. Many issuers will do this to keep your business, and it avoids the credit score hit of closure.
Paying off your balance before closure
You must pay your full balance before the issuer will close your account. If you have a balance remaining, the issuer will keep the account open until it is paid off. Make a final payment for the entire amount owed, not just the minimum payment.
If you are closing the card because you cannot afford the balance, contact the issuer and ask about a hardship program or a payment plan. Some issuers will work with you to set up a schedule that lets you pay off the debt over time while the account remains open. Once the balance is zero, you can then request closure.
After you make your final payment, wait for your statement to confirm the balance is zero before calling to close the account. This prevents confusion and ensures the issuer has recorded the payment.
What happens to rewards points and cash back
Rewards points and cash back balances do not disappear when you close a card, but the rules for using them vary by issuer. Some issuers let you redeem rewards for up to a year after closure; others require you to redeem before the account closes. A few issuers will let you transfer points to another card you hold with them.
Before you call to close the account, log into your online account and check your rewards balance. Call the issuer and ask what happens to your points or cash back after closure. If you have a substantial balance, redeem it before you request closure to avoid any risk of losing it.
Write down the issuer's policy on this — what they tell you over the phone may differ from what their website says, and having a record protects you if there is a dispute later.
Monitoring your credit report after closure
After you close a card, check your credit report within 30 to 60 days to confirm that the account shows as closed. You can view your credit report for free once per year at annualcreditreport.com, which is the official site run by the three major credit bureaus (Equifax, Experian, and TransUnion).
Look for the closed account in the report. It should show a status of "closed by consumer" or "closed at consumer's request." If it shows as "closed by creditor" or if it still shows as open, contact the issuer when ready and ask them to correct it. Errors on your credit report can lower your score and affect your ability to borrow.
The closed account will remain on your credit report for seven years. During that time, it still counts toward your credit history, though with less weight than an open account. After seven years, the account will fall off your report entirely.
What to do if the issuer refuses to close your account
Most issuers will close an account when you request it, but occasionally a representative will try to talk you out of it or claim there is a problem preventing closure. If this happens, ask to speak to a supervisor. Be polite but firm: you have the right to close your account.
If the supervisor also refuses, ask for the issuer's mailing address and send a written request for closure. Include your account number, your name, and a clear statement that you are requesting the account be closed. Send it by certified mail so you have proof of delivery. The issuer must respond within 30 days.
If the account still does not close, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints against credit card issuers and can force them to comply with your request.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, but usually only temporarily. Your score may drop 5 to 10 points because closing a card reduces your available credit and raises your utilization ratio. The damage is larger if you close an old account, because the account's age history will eventually disappear from your report. The score typically recovers within a few months if your other accounts are in good standing.
Can I close a credit card with a balance on it?
No. Most issuers will not close an account that has an unpaid balance. You must pay off the entire balance first. If you cannot afford to pay it all at once, contact the issuer and ask about a payment plan or hardship program.
What happens to my rewards points when I close a card?
This depends on the issuer. Some let you redeem points for a year after closure; others require redemption before closure. Call the issuer before you close the account and ask about their policy. If you have a large rewards balance, redeem it before requesting closure to be safe.
How long does it take for a closed account to stop showing on my credit report?
A closed account remains on your credit report for seven years. It will continue to affect your credit history during that time, though with less weight than an open account. After seven years, it will fall off automatically.
What should I do if the issuer says the account is still open after I closed it?
Contact the issuer when ready and provide the date and confirmation number from your original closure request. Ask them to investigate why the account did not close. If they cannot resolve it, send a written request for closure by certified mail and file a complaint with the CFPB if the problem persists.