The basic steps to close a credit card
To close a credit card, 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. Pay off any remaining balance first — most issuers will not close an account with an outstanding balance, and if they do, you will still owe the debt. After you hang up, watch for a written confirmation letter, which usually arrives within two weeks.
The timing matters. Close the card after your monthly statement closes but before the next billing cycle begins. This prevents new charges from posting to a closed account and keeps your final bill clear. If you have automatic payments set up on that card, move them to another payment method before you call.
Do not cut up the card or throw it away until you receive written confirmation that the account is closed. If a dispute arises later — a charge you did not recognize, or a claim that the account is still open — you will need proof that you initiated the closure.
Key Takeaways
- Pay off your full balance before closing; most issuers will not close an account with money owed.
- Call the customer service number on your card and request closure, then ask for written confirmation by mail.
- Closing a card can lower your credit score temporarily because it reduces your total available credit and may raise your credit utilization ratio on other cards.
- Keep the closed card until you receive the written confirmation letter, in case you need proof of the closure later.
- Move any automatic payments to another card or bank account before you close the account.
Why closing a card affects your credit score
Closing a credit card reduces the total amount of credit available to you. If you have other cards with balances, this change makes those balances represent a larger percentage of your total credit limit — a metric called credit utilization. A higher utilization ratio can lower your score, even if you have not missed a payment.
The impact is usually temporary. Your score will recover over a few months as you pay down balances on remaining cards. The damage is smaller if you close a card with a high credit limit after paying it to zero, because the utilization change is less dramatic.
Closing a card also removes it from your credit history, which can shorten the average age of your accounts. Older accounts help your score. If the card you are closing is your oldest account, the effect on your score may be larger than if you close a newer one.
When to close a card versus keeping it open
Keep a card open if you use it regularly or if it is your oldest account. The small annual fee (if any) is usually worth the benefit to your credit score. If the card charges an annual fee you do not want to pay, call and ask if the issuer will waive it or downgrade you to a no-fee version of the same card. Many issuers will do this to keep the account open.
Close a card if you have paid off the balance, do not use it, and the issuer will not waive the annual fee. Closing a card you never use will not hurt your score as much as closing your oldest or highest-limit card. If you have multiple cards with similar limits and ages, closing one of the newer ones minimizes the damage.
If you are closing a card because you are trying to reduce debt or change your spending habits, that is a valid reason — but closing the card itself does not reduce your debt. Only paying down the balance does. Closing the card straightforward removes the temptation to use it again.
What happens to rewards points and cash back
Rewards points and cash back balances usually remain in your account after closure, but the rules vary by issuer. Some let you redeem them for 30 to 90 days after closure; others let you redeem indefinitely. A few issuers forfeit unused rewards when you close the account.
Before you call to close the card, log into your account online and check your rewards balance. Redeem any points or cash back you have accumulated. If you are unsure about the issuer's policy, ask the customer service representative before you authorize the closure.
Handling a card with a balance you cannot pay off yet
If you cannot pay off the full balance before closing, you have two options: keep the card open and continue paying it down, or close it with an outstanding balance. Closing with a balance does not erase the debt — you will still owe it and still pay interest. The account will show as closed on your credit report, which may look worse to future lenders than an open account you are actively paying down.
If you must close the card before the balance is paid, ask the issuer whether they will convert it to a fixed payment plan with no new charges allowed. Some issuers offer this as an alternative to keeping the account open. You will still owe the money, but the terms may be clearer.
What to do after the card is closed
Once you receive written confirmation that the account is closed, monitor your credit report to make sure it shows as closed. You can order a free credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — once per year at annualcreditreport.com. The report should show the account status as "closed by consumer" or "closed at consumer's request."
If the report shows the account as still open or shows a different status, contact the issuer and ask them to correct it with the credit bureau. Keep your written confirmation letter until the account appears correctly on your report.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, usually for a few months. Closing a card lowers your available credit and may raise your utilization ratio on other cards. The impact is smaller if you close a newer card with a low limit, and larger if you close your oldest or highest-limit card. Your score typically recovers within three to six months.
Can I close a credit card over email or online?
Most issuers require you to call customer service to close an account. Calling creates a record of your request and lets you ask questions about your specific account. After you call, ask the representative to send written confirmation by mail, which protects you if a dispute arises later.
What happens to my credit history after I close a card?
The closed account stays on your credit report for seven to ten years, depending on whether the account was in good standing when you closed it. This means the account continues to help your credit history even after closure. Closing the card does not erase it from your record.
Do I have to pay off the card before closing it?
Most issuers will not close an account with an outstanding balance. If they do allow it, you still owe the debt and will continue to pay interest. It is better to pay off the balance first, then request closure.
What if the issuer refuses to close my account?
This is rare, but if it happens, ask the representative why and what you need to do to proceed. Usually, paying off any balance or resolving a dispute will remove the obstacle. If the issuer continues to refuse, you can stop using the card and let the account become inactive, though this does not formally close it.