The right way to close a credit card account
Closing a credit card is straightforward: call the number on the back of your card, ask to close the account, and confirm the card issuer has marked it closed. The hard part is timing it right, because closing a card can lower your credit score even if you pay off the balance first.
The damage happens because closing an account changes two things that credit bureaus track. Your credit utilization ratio — the percentage of your total credit limit you're using — goes up when you remove available credit. Your average age of accounts goes down if the card you're closing is older than your other cards. Both of these changes can dip your score by 10 to 50 points, depending on your overall credit profile.
You can't avoid this dip entirely, but you can minimize it by closing the card at the right time and in the right order.
Key Takeaways
- Call the card issuer's customer service line, confirm the account is marked closed, and ask for written confirmation by mail or email.
- Pay off the full balance before closing, because closing an account with a balance doesn't erase the debt and may trigger a higher interest rate.
- Close newer cards before older ones, because closing your oldest account drops your average account age more sharply.
- Close cards with the lowest credit limits first if you're closing multiple accounts, because removing a small limit has less impact on your utilization ratio than removing a large one.
- Wait at least a few months after closing before explore for new credit, so the account closure doesn't combine with a new hard inquiry to lower your score further.
Pay the balance in full before you call
Closing an account with a remaining balance doesn't erase what you owe. The card issuer will continue to report the debt to credit bureaus, and you'll still owe the money. In some cases, closing an account with a balance can trigger a penalty interest rate or cause the issuer to freeze the account, making it harder to pay down.
If you have a balance you can't pay off when ready, leave the account open while you pay it down. Once the balance hits zero, wait one or two billing cycles to confirm the issuer has reported the zero balance to the credit bureaus. Then close the account.
Check your statement or log into your online account to see the exact balance, including any pending charges or interest that hasn't posted yet. Pay at least that amount before calling to close.
Call the issuer and confirm closure in writing
Find the customer service number on the back of your card or on your statement. Call during business hours and tell the representative you want to close the account. They may ask why, offer you a lower interest rate, or try to keep you as a customer — you can decline and proceed with closure.
Before you hang up, ask the representative three things: confirm the account is marked as closed, ask whether there are any remaining fees or charges, and request written confirmation. Some issuers will email confirmation when ready; others will mail it. Get the representative's name and the date and time of the call in case you need to reference it later.
Don't rely on closing the account online or through an app if that option exists. A phone call creates a record and gives you a chance to ask questions. If you do close online, follow up with a call to confirm the closure went through.
Close newer cards before older ones
Credit bureaus track how long you've had each account. The longer your average account age, the higher your credit score tends to be. Closing your oldest account drops this average more sharply than closing a newer one.
If you're closing one card, check which of your open accounts is oldest. If that's the card you want to close, consider keeping it open instead and closing a newer card if you have one. If you must close your oldest account, do it when your credit score is highest — usually after several months of on-time payments and low balances on your other cards.
If you're closing multiple cards, close the newest ones first. This spreads the damage to your average account age across multiple score updates rather than hitting it all at once.
Close cards with lower limits before higher limits
Your credit utilization ratio is the total balance on all your open cards divided by your total available credit. 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. If you close one card with a $5,000 limit, your total available credit drops to $10,000, and your utilization jumps to 30 percent — even though your balance hasn't changed.
When you're deciding which card to close, close the one with the lowest credit limit first. This removes less available credit and keeps your utilization ratio lower. If you have multiple cards you want to close, order them from lowest limit to highest.
The exception: if one of your cards has a very high limit that you're not using, closing it won't hurt your utilization much. In that case, closing the high-limit card might make sense if it's newer than your other cards.
What happens after you close the account
After closure, the card issuer will report the account as closed to the three credit bureaus — Equifax, Experian, and TransUnion. This usually happens within one or two billing cycles. You'll see the account listed on your credit report with a status of "closed" or "closed by consumer."
The closed account will stay on your credit report for up to seven years. During that time, it will continue to count toward your average account age (which is good), but it won't count toward your available credit (which is why your utilization ratio went up).
If you notice the account is still showing as open after two months, contact the issuer again and ask them to confirm closure with the bureaus. Occasionally an account stays listed as open by mistake.
When to avoid closing a card
Don't close a card if you're planning to explore for a mortgage, car loan, or other major credit in the next three to six months. The combination of a closed account and a new hard inquiry can lower your score enough to affect your interest rate or approval odds.
Don't close your oldest account unless you have no other choice. The age of your oldest account is one of the strongest factors in your credit score. If you have a newer card you don't use, close that one instead.
Don't close all your cards at once. If you have five cards and you close three in the same month, your score will drop more sharply than if you space the closures out over several months. If you need to close multiple cards, close one every two to three months.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, closing a card typically lowers your score by 10 to 50 points because it reduces your available credit and may lower your average account age. The damage is temporary — your score usually recovers within a few months of on-time payments and low balances on your remaining cards.
Can I reopen a card after I close it?
It depends on the issuer. Some will reopen a recently closed account if you call within 30 to 60 days. Others treat a closed account as closed permanently. If you think you might want the card back, ask the representative before you close whether the account can be reopened, and how long you have to request it.
What if the card issuer won't close my account?
Card issuers are required to close an account when you request it. If a representative refuses or says they need more information, ask to speak with a supervisor. If the issuer continues to refuse, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.
Should I cut up the card after closing it?
Yes. Cut or shred the card so it can't be used. The account is closed, so the card won't work anyway, but destroying it removes the temptation to use it and prevents someone else from finding it and attempting to use it.
Do I need to close a card if I'm not using it?
No. Leaving an unused card open is usually better for your credit score because it keeps your available credit high and preserves your average account age. The only reason to close an unused card is if it has an annual fee you don't want to pay, or if you're concerned about fraud or identity theft.