The basic steps to close a credit card account
To close a credit card account, call the customer service number on the back of your card, confirm you want to close it, and ask the representative to note in writing that you requested the closure. Most issuers will process the request when ready, though the account may take 7 to 10 business days to fully close. Pay any remaining balance before or at the time of closure — you cannot close an account with an outstanding balance, and the issuer will not let you.
After closure, request written confirmation that the account is closed at your request. This matters because the credit reporting agencies track whether you or the issuer closed the account, and that distinction affects your credit history. Keep the confirmation email or letter in your records.
Do not straightforward stop using the card and assume it will close on its own. Inactive accounts sometimes close automatically after 12 months of no activity, but the timing varies by issuer and the account may accrue fees in the meantime. Closing it yourself gives you control over the timing and documentation.
Key Takeaways
- Call the number on your card, pay any balance, and ask the representative to note that you requested the closure in writing.
- Request written confirmation of closure so your credit report shows you closed it, not the issuer.
- Closing a card reduces your total available credit, which can raise your credit utilization ratio and temporarily lower your credit score.
- Closing an old account removes its age from your credit history, which can shorten your average account age and lower your score.
- If you want to keep the account open but stop using it, ask the issuer to waive the annual fee instead of closing it.
Why closing a card affects your credit score
Closing a credit card account changes two numbers that credit scoring models use: your credit utilization ratio and your average account age. Your utilization ratio is the percentage of your total available credit that you are currently using. If you have two cards with $5,000 limits each ($10,000 total) and carry a $2,000 balance, your utilization is 20 percent. If you close one card, your total available credit drops to $5,000, and the same $2,000 balance now represents 40 percent utilization. Higher utilization ratios lower your score.
Average account age is the second factor. Credit scoring models reward you for having a long history of responsible borrowing. When you close an old account, that account eventually stops counting toward your average age, which can lower your score. The effect is usually small if you have other old accounts open, but it is real.
These effects are temporary. Your score will recover as you pay down balances and as the closed account ages in your history. Most people see the score rebound within a few months. However, if you are planning to explore for a mortgage or other large loan in the next 60 to 90 days, closing a card when ready before that process can work against you.
When to close a card and when to keep it open
Close a card if you are paying an annual fee and you do not use the card. The fee is a real cost with no benefit. Call the issuer and ask whether they will waive the fee before you close — many will waive it for a year or longer if you ask, especially if you have been a customer for a while. If they refuse and you do not want the card, closing it is the right choice.
Close a card if you are carrying a balance on it and paying interest, and you have another card with a lower interest rate. Transfer the balance to the lower-rate card, then close the high-rate card. This saves you money on interest and simplifies your accounts.
Keep a card open if it has no annual fee, even if you do not use it. The account helps your credit score by keeping your utilization ratio low and maintaining your average account age. Using the card once every six months — a small purchase you pay off when ready — keeps the account active without any cost to you.
Keep a card open if it is your oldest account. Closing your oldest card has the largest effect on your average account age. If you have a newer card with no annual fee, close that one instead.
What happens to your balance and rewards points
You must pay your full balance before the account closes. If you have a remaining balance, the issuer will not process the closure request. Pay the balance in full, then call to close the account.
Rewards points or cash back balances vary by issuer. Some issuers let you redeem points after closure; others require you to redeem before closing. Call your issuer and ask about the policy before you close the account. If you have a large points balance, redeem it first, then close the account. Do not assume the points will transfer to another card or remain in your account after closure.
Closing a card with an authorized user
If someone else is an authorized user on your card, closing the account will also close their access to the card. Notify them before you call to close the account. If you want to keep the account open for them, you can remove them as an authorized user instead — call the issuer and ask to remove the authorized user while keeping the account open.
If you are an authorized user on someone else's card and they close the account, the closure will appear on your credit report as well. You cannot prevent this, but the effect on your score is usually smaller than it is for the account owner because you are not responsible for the account.
How to close a card if the issuer is out of business
If your card issuer has closed or been acquired by another bank, call the acquiring bank's customer service line. They will have records of your account and can process the closure. If you cannot find a phone number, search the Federal Deposit Insurance Corporation (FDIC) website for the bank's name — the FDIC maintains a list of failed banks and their successor institutions.
If the account is very old and you cannot locate the issuer, you can dispute the account with the credit reporting agencies (Equifax, Experian, and TransUnion) and ask them to remove it from your report. This is a slower process and should be a last resort, but it is an option if the issuer truly no longer exists.
What to do after you close the account
After closure, continue to monitor your credit report to confirm the account shows as closed at your request. You can get a free credit report from each of the three major credit reporting agencies once per year at AnnualCreditReport.com. Check the report 30 to 60 days after closure to verify the status.
If the account shows as closed by the issuer rather than closed at your request, contact the issuer and ask them to correct the notation. Provide them with the written confirmation you received when you closed the account. The correction may take 30 days to appear on your report.
Do not close multiple cards at once. If you need to close more than one account, space the closures 3 to 6 months apart. This spreads out the impact on your credit score and makes it easier to monitor the effect of each closure.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Closing a card will lower your score temporarily because it reduces your available credit and may shorten your average account age. The effect is usually 5 to 10 points, though it can be larger if the card is very old or if you have few other accounts. Your score will recover within a few months as you pay down balances.
Can I reopen a credit card after I close it?
Some issuers will reopen a closed account if you request it within 30 to 60 days of closure. Call the issuer and ask. If the account is older than that, the issuer may treat a new process as a new account, which will trigger a hard inquiry on your credit report. Check with your issuer about their policy before you close the account if you think you might want to reopen it.
What if I have a balance transfer or promotional rate on the card?
You can close the card, but you must pay off the balance first. If you have a promotional 0 percent rate, pay off the balance before the rate expires so you do not owe interest. If you cannot pay it off in time, transfer the balance to another card with a 0 percent offer before you close the original card.
Do I need to cut up the 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, a physical card could theoretically be used fraudulently if someone finds it. Destroying the card removes that small risk.
How long does it take for a closed account to fall off my credit report?
A closed account stays on your credit report for seven years from the date of closure. During that time, it continues to affect your credit score, though the effect weakens over time. After seven years, the account is removed from your report automatically.