Closing a credit card account is straightforward, but the timing and method matter for your credit score
You can close a credit card account by calling the card issuer's customer service number, usually found on the back of your card or on your online account dashboard. The process takes minutes: you tell them you want to close the account, they confirm your identity, and the account closes. The harder part is deciding when to close it, because closing an account can lower your credit score temporarily by reducing your available credit and changing how much of your credit limit you are using.
Before you call, pay off the balance in full. Most issuers will not close an account with an outstanding balance, and even if they do, you will still owe the debt. After the account closes, you will receive a final statement showing a zero balance, and the closed account will remain on your credit report for seven to ten years.
Key Takeaways
- Pay your balance to zero before calling to close, because issuers will not process a closure request on an account with debt.
- Closing a card reduces your total available credit, which can raise your credit utilization ratio and lower your score by 5 to 10 points in the short term.
- If you have multiple cards, close the newest one or the one with the lowest credit limit first to minimize the impact on your score.
- Request written confirmation of the closure and check your credit report two months later to confirm the account shows as closed.
Why your credit score drops when you close an account
Your credit score depends partly on credit utilization — the percentage of your total available credit that you are currently using. If you have three cards with $5,000 limits each ($15,000 total) and carry a $3,000 balance, your utilization is 20 percent. If you close one of those cards, your total available credit drops to $10,000, and your utilization jumps to 30 percent, even though you still owe $3,000. That change alone can lower your score by 5 to 10 points.
The second reason is account age. Credit scoring models reward a long history of accounts in good standing. When you close an old account, the average age of your accounts drops, which can also lower your score slightly. A newer account closing has less impact than an older one.
These effects are temporary. Your score will recover within a few months as the closed account ages and as you continue to pay other accounts on time. The damage is worst in the short term — the first 30 to 90 days after closure.
Which card to close first if you have multiple accounts
If you are closing more than one card, close them in this order: newest first, then lowest credit limit. Closing a card you opened recently has less impact on your average account age than closing an older one. Closing a card with a $2,000 limit reduces your available credit less than closing one with a $10,000 limit.
If one card has an annual fee and another does not, close the one with the fee. If both have fees, close the one with the higher fee first. Some issuers will waive a single annual fee if you call and ask, so it is worth a quick call before you decide to close.
Space closures at least three months apart if possible. This gives your credit score time to recover between each closure and makes it easier to track which closure caused any score movement you see on your credit report.
The step-by-step process for closing an account
Call the customer service number on the back of your card or log into your online account and look for a "contact us" or "customer service" link. Have your account number and the last four digits of the Social Security number associated with the account ready.
Tell the representative you want to close the account. They may ask why, and they may offer you a lower interest rate or waived annual fee to keep it open. You can accept the offer if you change your mind, or decline and proceed with closure. Do not feel pressured either way — this is your decision.
Confirm that your balance is zero before the representative processes the closure. Ask them to send you written confirmation of the closure to your mailing address or email. Write down the date, time, and representative's name. Hang up and check your online account within 24 hours to confirm the status has changed to "closed."
What happens to your balance transfer and rewards after closure
If you have an outstanding balance transfer on the card, closing it will not erase the debt — you still owe it. The issuer will send you a bill each month until it is paid off, even though the account is closed. Pay it as you normally would.
Any rewards points or cash back you have earned will remain in your account after closure, though the rules vary by issuer. Some let you redeem them for 30 to 90 days after closure; others let you keep them indefinitely. Ask the representative about your card's specific policy before you hang up, and redeem any points you want to keep before the account closes.
Checking your credit report after closure
Two months after the account closes, pull a free copy of your credit report from AnnualCreditReport.com, the official site run by the three major credit bureaus (Equifax, Experian, and TransUnion). Check that the account shows as "closed" or "closed by consumer" rather than "open" or "delinquent."
If the account still shows as open 60 days after closure, call the issuer again and ask them to confirm the closure with the credit bureaus. This is rare, but it happens. Getting it corrected prevents the account from affecting your credit utilization calculation.
Your credit score will dip slightly in the first month or two, then recover. You can check your score for free through your bank's website, your credit card issuer's website, or services like Credit Karma. Do not pay for a credit score report — free versions are accurate enough for your purposes.
Alternatives to closing an account
If you are closing an account mainly because of an annual fee, call and ask for a fee waiver first. Many issuers will waive the fee once or twice if you have been a customer for several years and have paid on time. If they refuse and you want to keep the card open, downgrade to a no-fee version of the same card instead of closing it. This keeps your available credit intact and preserves your account history.
If you are closing an account because you are worried about overspending, consider locking the card instead. Most issuers let you freeze or lock a card through your online account, which prevents new charges but keeps the account open and active. You can unlock it later if you change your mind.
If you are closing an account because you no longer use it, you can straightforward stop using it and leave it open. An unused account in good standing does not hurt your credit — it actually helps by adding to your available credit and account age.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, but only temporarily. Your score may drop 5 to 10 points in the first month because closing reduces your available credit and raises your utilization ratio. The effect fades within two to three months as you continue to pay other accounts on time. The older the account you are closing, the larger the temporary dip.
Can I close a credit card with a balance on it?
Most issuers will not process a closure request if you have an outstanding balance. You must pay the balance to zero first. If an issuer does close an account with a balance, you still owe the debt and will receive monthly bills until it is paid off.
What happens to my rewards points when I close the card?
Rewards points usually remain in your account after closure, though you typically have 30 to 90 days to redeem them before they expire. Some issuers let you keep points indefinitely. Ask the representative about your specific card's policy before closing.
Should I close old cards or new cards first?
Close new cards first. Closing a newer account has less impact on your average account age than closing an older one. If you have multiple cards to close, start with the newest and work backward, spacing closures at least three months apart.
How long does it take for a closed account to stop affecting my credit?
A closed account stops affecting your credit utilization when ready, but it remains on your credit report for seven to ten years. The temporary score dip from closure usually recovers within two to three months. The account's history of on-time payments continues to help your score even after it is closed.