You can cancel a credit card by calling the issuer's customer service number, but the timing and method matter for your credit score
The mechanics are straightforward: call the number on the back of your card, confirm your identity, and ask to close the account. The issuer will process the cancellation, usually within days. But the financial consequences — how it affects your credit score, whether you owe a balance, what happens to rewards points — depend on the order you do things in and which card you're closing.
Most people cancel for one of three reasons: the card charges an annual fee they no longer want to pay, they're consolidating accounts, or they're trying to reduce debt. Each situation has a different best approach. Closing the wrong card at the wrong time can lower your credit score by 10 to 50 points, even if you have no balance on it.
Key Takeaways
- Pay off any balance on the card before you call to cancel, because the issuer will close the account whether or not you owe money, and you'll still have to pay what you owe.
- If the card has an annual fee and you want to avoid paying it again, call before the fee posts — usually 30 days before your account anniversary — and ask if they'll waive it or convert the card to a no-fee version instead of closing it.
- Closing a card reduces your available credit, which can raise your credit utilization ratio and lower your score even if you pay other cards on time.
- Rewards points usually expire or are forfeited when you close the account, so redeem them before you call the issuer.
- If you're closing the card because of fraud or a data breach, tell the issuer that when you call — they may expedite the process or waive the final statement fee.
What happens to your balance when you close the account
Closing the account does not erase what you owe. If you have a balance, you will still have to pay it, and the issuer will continue to charge interest on it until it's paid off. The account will show as "closed" on your credit report, but the balance remains your responsibility.
The best practice is to pay the balance to zero before you call to cancel. This prevents interest from continuing to accrue after the account closes, and it means you won't have a lingering debt tied to a closed account — which can actually hurt your credit score more than an open account with a balance would.
If you have a large balance you can't pay off when ready, consider asking the issuer whether you can keep the account open but stop using it. Many issuers will allow this, and it lets you pay down the balance without the account showing as closed on your credit report.
Annual fees and how to avoid paying one before you cancel
If you're canceling because of an annual fee, timing matters. Most issuers charge the annual fee on your account anniversary — the date you opened the card. If you call to cancel after the fee has posted, you've already paid it for that year.
Call about 30 days before your account anniversary and ask whether the issuer will waive the fee. Many will, especially if you've been a customer for several years or have a good payment history. If they won't waive it, ask whether they can convert your card to a different product from the same issuer that has no annual fee — this keeps the account open, which is better for your credit score, and you avoid the fee.
If the issuer won't waive the fee and won't convert the card, then call back after the fee posts and ask them to refund it. Some issuers will do this as a one-time courtesy. If they refuse, you can dispute the charge with your bank, though this is a slower process and the issuer may close the account in response.
How closing a card affects your credit score
Closing a credit card can lower your credit score because it reduces the total amount of credit available to you. Credit scoring models use your credit utilization ratio — the percentage of your total available credit that you're currently using — as a major factor. If you have $5,000 in balances across all your cards and $20,000 in total available credit, your utilization is 25%. If you close a card with a $5,000 limit and no balance, your available credit drops to $15,000, and your utilization jumps to 33%.
The score drop is usually temporary. It typically recovers within a few months as long as you keep paying your other cards on time and don't run up new balances. However, if you're planning to explore for a mortgage, car loan, or other major credit product in the next three to six months, closing a card right before you explore can work against you.
The impact is smaller if you're closing a card with a low limit or if you have many other cards open. It's larger if the card you're closing has a high limit or if you already have high utilization on your other cards.
What happens to rewards points and cash back
Rewards points and cash back balances are usually forfeited when you close the account. Some issuers will let you redeem them up to a certain point after closure, but the safest approach is to redeem everything before you call to cancel.
Check your account online or call the issuer to see what rewards you have available. Most cards let you redeem points for statement credits, gift cards, travel bookings, or cash back. Do this before you initiate the cancellation, because once the account is closed, the issuer has no obligation to let you access the rewards portal.
If you have a small balance of points that's not worth redeeming, ask the issuer what their policy is on forfeited rewards. Some will donate them to charity on your behalf, though this is not may provide.
The step-by-step process for canceling
Call the customer service number on the back of your card. You'll need to verify your identity — usually with your Social Security number, card number, and date of birth. Have your card in front of you.
Tell the representative you want to close the account. They may ask why, and they may offer to waive fees, lower your interest rate, or convert your card to a different product to keep you as a customer. If you've already decided to cancel, you can listen to these offers or decline them.
Confirm that your balance is zero before the account closes. Ask the representative to confirm the closing date and whether you'll receive a final statement. Request that they note in your account that you initiated the closure, not the issuer — this can matter if there's a dispute later.
After you hang up, monitor your credit report over the next 30 to 60 days to make sure the account shows as closed by the consumer, not by the issuer. You can check your credit report free once per year at annualcreditreport.com, which is the official government site.
When to keep a card open instead of closing it
If the card has no balance and no annual fee, keeping it open is almost always better for your credit score. An open account with zero balance shows responsible credit management and keeps your available credit high.
If the card does have an annual fee but you've had it for many years, consider asking the issuer to convert it to a no-fee version of the same card. This preserves your account age — which is a factor in your credit score — and keeps your available credit intact.
If you're worried about fraud or identity theft, you don't have to close the card. You can ask the issuer to issue you a new card number, freeze the account so it can't be used, or straightforward stop using it. Closing it is one option, but it's not the only one.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
It may lower your score temporarily because it reduces your available credit and raises your utilization ratio. The impact is usually 10 to 50 points and typically recovers within a few months. The effect is smaller if you're closing a low-limit card or if you have many other cards open.
Can I cancel a credit card if I still owe money on it?
Yes, but you should pay off the balance first. Closing an account with a balance doesn't erase the debt — you'll still owe it and still pay interest. The account will show as closed on your credit report, which can hurt your score more than an open account with a balance would.
What happens to my rewards points when I close the card?
Most issuers forfeit rewards points when you close the account. Redeem all your points before you call to cancel. Check your account online or call the issuer to see what you have available and how to redeem it.
How long does it take to close a credit card?
The account usually closes within a few days to a week after you call. The issuer will send you a final statement showing the closure. It may take 30 to 60 days for the closed account to appear on your credit report.
Should I close my oldest credit card?
No, if you can avoid it. Account age is a factor in your credit score, and closing your oldest card can lower your score. If the card has an annual fee, ask the issuer to convert it to a no-fee version instead of closing it.