The basic steps to close a credit card account
Call the customer service number on the back of your card or log into your online account and look for a "close account" or "account management" option. Most issuers let you close over the phone in under five minutes. Have your account number ready. The issuer will ask why you're closing it—you don't have to give a detailed reason, but they may offer you a lower rate or fee waiver to keep the account open. If you want to close it anyway, say so clearly. Ask the representative to confirm the account is closed and note the date.
Before you call, pay off any remaining balance. You cannot close an account with an outstanding balance, and the issuer will not process your request until it's paid. If you have a pending balance transfer or promotional offer, closing the account may trigger interest charges on that balance, so check your terms first.
After closing, request written confirmation by mail or email. Some issuers send it automatically; others require you to ask. Keep this confirmation for your records—it proves the account was closed on your terms, which matters if a dispute arises later.
Key Takeaways
- Pay off your full balance before calling to close the account, because issuers will not process a closure request if money is owed.
- Closing a card can lower your credit score temporarily because it reduces your total available credit and may raise your credit utilization ratio on remaining cards.
- Request written confirmation of the closure in writing, because verbal confirmation alone is not always documented in your credit file.
- Closed accounts remain on your credit report for seven years, so the damage to your score fades over time as the account ages.
Why closing a card can hurt your credit score
Your credit score depends partly on credit utilization—the percentage of your available credit that you're currently using. If you have three cards with $5,000 limits each ($15,000 total) and you're carrying a $3,000 balance, your utilization is 20 percent. Close one of those cards, and your available credit drops to $10,000, making that same $3,000 balance equal 30 percent utilization. Higher utilization typically lowers your score.
Closing an account also removes that card's payment history from your active credit mix. If it's an older account, closing it can shorten the average age of your accounts, which also affects your score. The damage is usually temporary—your score typically recovers within a few months as the closed account ages and your utilization on remaining cards stays low.
If you're planning to explore for a mortgage, car loan, or other credit in the next three to six months, closing a card right before that process can work against you. If you're not borrowing soon, the timing matters less.
When to close a card and when to keep it open
Close a card if you're paying an annual fee you don't use, if the card carries a high interest rate and you're tempted to carry a balance, or if you're trying to simplify your finances. Closing a card you don't use is often the right move if the fee outweighs any rewards or benefits.
Keep a card open if it has no annual fee, if it's your oldest account (closing it hurts your average account age), or if you want to maintain low utilization across multiple cards. You don't have to use the card—just keep it open and use it occasionally (a small purchase every few months) to prevent the issuer from closing it for inactivity.
If you're closing a card because you're struggling with debt, closing it won't stop the damage to your score—the damage is already done. Focus instead on paying down balances on your remaining cards and making on-time payments going forward.
What happens to rewards points and cash back
Rewards and cash back you've already earned usually stay in your account after closure, but the rules vary by issuer. Some let you redeem points for months after closing; others require you to redeem before the account closes. Call your issuer and ask about their specific policy before you close the account.
Any rewards you haven't earned yet are forfeited. If you're close to a sign-up bonus or a redemption threshold, finish earning it before you close. Some issuers will let you transfer points to a partner program or another card you hold with them, so ask about that option too.
Authorized users and joint accounts
If someone else is an authorized user on your card, closing the account removes their access when ready. Let them know before you close it. If the card is a joint account (meaning both of you are legally responsible for the balance), both account holders usually have to agree to close it, and both names appear on the closure confirmation.
If you're an authorized user on someone else's card and they close it, the account disappears from your credit report. This can affect your score the same way it affects theirs—by lowering your available credit and potentially raising your utilization on other cards.
After you close the account: what to monitor
Check your credit report 30 to 60 days after closure to confirm the account shows as "closed by consumer" rather than "closed by issuer" or "charged off." You can get a free report from each of the three major bureaus (Equifax, Experian, and TransUnion) once per year at annualcreditreport.com. If the account shows as closed by the issuer instead, contact the bureau in writing and ask them to correct it.
Watch for any charges or interest appearing on the account after closure. Once an account is closed, no new charges should post. If they do, contact the issuer when ready and ask them to reverse the charges.
If the issuer later reports the account as delinquent or sends it to a collection agency, you have grounds to dispute it because you closed it in good standing. Keep your written closure confirmation and any statements showing a zero balance at the time of closure.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, usually temporarily. Your score may drop 5 to 50 points depending on how old the account is and how much of your available credit it represented. The damage fades over time as the closed account ages and your payment history on remaining cards stays clean.
Can I close a card if I still owe money on it?
No. You must pay off the full balance first. The issuer will not process a closure request while a balance is outstanding. You can continue making payments on a closed account, but the account itself cannot be closed until the balance reaches zero.
What if the issuer closes my account instead of me?
If the issuer closes it for inactivity or non-payment, it appears on your credit report as "closed by issuer" rather than "closed by consumer," which looks worse to lenders. If you closed it yourself, it shows as "closed by consumer," which is preferable. If the issuer closed it and you believe it was in error, contact them in writing with proof of payment or activity.
Do I need to destroy the physical card after closing?
Yes. Cut it up or shred it so it cannot be used. Even though the account is closed, someone who finds the card could attempt to use it, and while the transaction would be declined, it's safer to destroy it.
How long does a closed account stay on my credit report?
Seven years from the date of closure. After that, it falls off automatically. During those seven years, it continues to affect your score, but the impact weakens as the account ages and as newer accounts and payment history accumulate.