Closing a credit card is straightforward, but the timing and order matter for your credit score
You can close a credit card by calling the issuer's customer service number on the back of your card, or by logging into your online account and requesting closure. Most issuers will process the request when ready, though some send a written confirmation. The card itself stops working right away, but the account remains on your credit report for seven to ten years after closure — which is why the order in which you close cards affects your credit score more than the act of closing itself.
The main risk is a sudden drop in your credit utilization ratio. If you close a card with a $5,000 limit and you carry $2,000 in balances on other cards, your utilization jumps from 20% to a higher percentage. That shift can lower your score by 10 to 50 points, depending on how much of your total available credit you're using. The damage is temporary — it recovers as you pay down balances — but it's avoidable if you plan the closure.
Key Takeaways
- Pay off the full balance before closing, or your remaining balance will be reported as maxed out on that card.
- Close cards with the lowest credit limits first if you must close multiple cards, to minimize the impact on your utilization ratio.
- Wait at least 30 days after closing before explore for new credit, because the closure temporarily lowers your score.
- Request written confirmation of closure from the issuer, because some cards reopen if you use them again by accident.
- Check your credit report three months after closure to confirm the account shows as closed, not just inactive.
Pay off the balance before you call to close
Closing a card with an outstanding balance doesn't force you to pay it when ready, but it does change how the balance appears on your credit report. An open account with a balance shows as "in good standing" if you're making payments. A closed account with a balance shows as "closed by consumer" with a remaining balance, which looks worse to lenders reviewing your credit history.
If you can't pay the full balance before closure, pay it down as much as possible first. Then close the account and continue making payments on the closed account until it's paid off. The issuer will send you statements and accept payments by mail or phone even after closure. This approach is better than leaving the account open with a balance you're not using the card for.
Reduce your credit utilization before closing high-limit cards
Your credit utilization ratio — the percentage of your total available credit that you're currently using — makes up 30% of your credit score. Closing a card removes that card's credit limit from your total available credit, which raises your utilization percentage even if your balances don't change.
If you have a $10,000 limit card and a $5,000 limit card, and you carry $3,000 in balances, your utilization is 20% ($3,000 ÷ $15,000). If you close the $10,000 card, your utilization jumps to 60% ($3,000 ÷ $5,000). To avoid this, pay down your balances to below 10% of your total limits before closing. If you're closing multiple cards, close the ones with the lowest limits first — they have less impact on your total available credit.
Call the issuer and request written confirmation
Find the customer service number on the back of your card or on your billing statement. Call and tell the representative you want to close the account. They may ask why you're leaving or offer you a retention offer — a lower interest rate, annual fee waiver, or bonus points. You can accept or decline; the choice doesn't affect your ability to close.
After the representative confirms the closure, ask them to mail you a written confirmation letter stating the account is closed at your request and the final balance (if any). Keep this letter with your financial records. Some issuers reopen closed accounts if you accidentally use the card again, and the confirmation letter protects you if a dispute arises about whether the account was truly closed.
If you prefer not to call, many issuers allow you to request closure through their mobile app or website. Log in, find the account settings or customer service section, and look for a "close account" or "close this card" option. The process is the same, but you won't receive verbal confirmation, so follow up by checking your next statement to confirm the account shows as closed.
Destroy the card and monitor your credit report
Cut up the physical card or shred it so it can't be used or found. Some people keep one card from a closed account for their records, but this creates a risk if the card is lost or stolen — the issuer may reactivate it if someone uses it, even though the account is closed.
Check your credit report about 30 days after closure to confirm the account appears as closed. You can view your credit report free once per year at annualcreditreport.com, which is the official site run by the three major credit bureaus (Equifax, Experian, and TransUnion). If the account still shows as open or active after 30 days, call the issuer again and ask them to confirm the closure with the credit bureaus.
Understand how closure affects your credit score and timeline
Your credit score typically drops 5 to 50 points when ready after closure, depending on how much of your available credit you were using and how long you've had the account. The drop is temporary. As you pay down other balances over the next few months, your utilization ratio improves and your score recovers. Most people see their score return to pre-closure levels within three to six months.
The closed account itself stays on your credit report for seven to ten years. During that time, it continues to show your payment history — if you made on-time payments, it helps your score; if you missed payments, it hurts. After seven to ten years, the account falls off your report entirely and no longer affects your score.
Avoid explore for new credit for at least 30 days after closure. Each process triggers a hard inquiry, which lowers your score by a few points. Combined with the closure's impact on your utilization, multiple applications in quick succession can create a larger dip than necessary.
When to keep a card open instead of closing it
Closing a card is sometimes the wrong move. If the card has no annual fee and you're not using it, keeping it open costs nothing and helps your credit score by maintaining available credit and payment history. Many people close cards they no longer use, then regret it when their score drops.
If the card has an annual fee you don't want to pay, call the issuer first and ask if they'll waive it or convert the card to a no-annual-fee version. Many issuers will do this to keep your account open. If they won't, then closure makes sense. If the card has a high interest rate but you're not carrying a balance, keeping it open is still better for your score than closing it.
The only time closure is clearly the right choice is when you're paying an annual fee you don't use the card enough to justify, or when you're trying to reduce the number of accounts you're managing and you have other cards with better rewards or lower rates.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, but usually only temporarily. Your score typically drops 5 to 50 points when ready because closing removes available credit and raises your utilization ratio. The impact is larger if you were using a high percentage of that card's limit. Your score usually recovers within three to six months as you pay down other balances.
Can I reopen a credit card after I close it?
It depends on the issuer and how long ago you closed it. Most issuers will reopen an account within 30 to 60 days of closure if you call and ask. After that window, reopening becomes harder or impossible. If you think you might want the card back, wait a few weeks before closing, or call the issuer to ask their specific policy before you close.
What happens to my rewards points when I close the card?
Rewards points are usually yours to keep after closure, but the rules vary by issuer. Some let you redeem points for cash, travel, or merchandise even after the account is closed. Others require you to redeem before closure. Check your card's terms or call the issuer before closing to confirm what happens to your points balance.
Do I have to pay off the balance before closing?
No, but you should. Closing with a balance doesn't force when ready payment, but it changes how the balance appears on your credit report — it shows as a closed account with a remaining balance, which looks worse than an open account in good standing. You can continue making payments on the closed account until it's paid off.
How long does it take to close a credit card?
The account closes when ready when you call or submit a request online. However, it can take 30 to 60 days for the closure to appear on your credit report. Check your credit report after 30 days to confirm the account shows as closed. If it still shows as open, contact the issuer again.