The basic steps to close a credit card

To close a credit card, call the customer service number on the back of your card, tell them you want to close the account, and ask them to confirm the closure in writing. That is the core of it. Before you call, pay off any remaining balance — most issuers will not close an account with an outstanding debt, and even if they do, you will still owe the money. After you call, watch for a confirmation letter in the mail within a week or two, and keep it.

The reason to get written confirmation is straightforward: if a dispute arises later about whether the account was actually closed, you have proof. Verbal confirmation over the phone is not enough. Some issuers will email confirmation instead of mailing it; ask which method they use and request whichever one they offer.

Do not cut up the card when ready. Wait until you receive written confirmation that the account is closed. If something goes wrong — the issuer claims they never received your request, or the account stays open — you will need the card number to straighten it out.

Key Takeaways

  • Pay off your full balance before calling to close the account, because most issuers will not process a closure request on an account with debt.
  • Call the customer service number on the back of your card and request written confirmation of the closure, which usually arrives within one to two weeks.
  • Closing a card can lower your credit score temporarily because it reduces your total available credit, but the effect fades over time.
  • If you have a long history with the card, closing it removes that account from your credit history, which can lower your score more than closing a newer card would.
  • Keep the card itself until you receive written confirmation, in case you need the account number to resolve a dispute.

Why closing a card affects your credit score

Closing a credit card lowers your credit score, at least temporarily. The reason is credit utilization — the percentage of your total available credit that you are currently using. If you have three cards with $5,000 limits each and you carry a $2,000 balance on one of them, your utilization is 13 percent ($2,000 divided by $15,000). If you close one of the cards with a zero balance, your total available credit drops to $10,000, and your utilization jumps to 20 percent ($2,000 divided by $10,000). That change alone can drop your score by a few points.

The effect is usually larger if the card you are closing is old. Credit scoring models reward a long history of responsible use, so closing an account you have had for many years removes that positive history from your active accounts. A card you opened five years ago carries more weight than one you opened last year.

The score drop is not permanent. As time passes and you continue to pay other accounts on time, the impact shrinks. Most people see their score recover within a few months, though it can take longer if the closed card was very old or if you have other negative marks on your report.

When closing a card makes sense

Close a card if you are paying an annual fee and you do not use the card enough to justify it. Call the issuer first and ask whether they will waive the fee; many will, especially if you have been a customer for years. If they refuse and you do not want to pay, closing it is reasonable.

Close a card if you are carrying a balance on it and you are tempted to keep using it while you pay it down. Removing the temptation can help you focus on paying off the debt. Just remember that closing the account does not erase the debt — you will still owe the money, and the issuer will still report the closed account to the credit bureaus.

Close a card if you suspect fraud or identity theft. Call when ready, report the suspicious activity, and ask the issuer to close the account. They will usually issue you a new card with a new number if you want to keep the account open under a different number, or they can close it entirely.

Do not close a card straightforward because you are not using it. An unused card with a zero balance helps your credit utilization ratio and your credit history length. The only downside is if there is an annual fee.

What happens to your balance after you close the account

If you close the account while you still owe money, the debt does not disappear. You will continue to receive bills, and you will continue to owe interest on the remaining balance. The issuer will report the closed account to the credit bureaus, and it will show up on your credit report as a closed account with a balance.

Some people close an account hoping to stop paying the debt, but that does not work. The issuer can still pursue collection, and the debt will remain on your credit report for up to seven years from the date of the last payment. Closing the account actually makes it harder to manage because you lose online access to the account and have to handle payments by mail or phone.

Always pay off the balance before you close. If you cannot pay it all at once, set up a payment plan with the issuer before you request closure, or close the account after you have paid it off.

Handling store cards and rewards cards differently

Store credit cards (like a Target or Macy's card) close the same way as regular cards: call the number on the back and request written confirmation. The impact on your credit score is usually smaller because store cards often have lower credit limits, so closing one does not change your total available credit as dramatically.

Rewards cards are worth thinking about before you close them. If you have earned rewards points or cash back that you have not yet redeemed, check your account balance before you call. Some issuers will let you redeem rewards after closure, but others will not. Ask the customer service representative what happens to your rewards before you request closure, and redeem anything you want to keep.

What to do if the issuer will not close your account

Occasionally an issuer will refuse to close an account, usually because you still owe a balance. In that case, pay down the debt and call again. If the issuer continues to refuse even after the balance is zero, ask to speak to a supervisor and explain that you want the account closed. Document the date and time of the call and the name of the person you spoke with.

If the issuer still refuses, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints about credit card issuers and can pressure them to close accounts when there is no legitimate reason to keep them open. Include the dates of your calls and the names of the representatives you spoke with.

Monitoring your credit report after closure

After you close the account, check your credit report a few weeks later to confirm that it shows as closed. You can get a free copy of your credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — once per year at annualcreditreport.com. This is the official government site, not a third-party service.

Look for the closed account in your report and verify that the balance shows as zero. If the account still shows as open or if there is an outstanding balance, contact the issuer again with your confirmation letter and ask them to correct the report. Errors on your credit report can lower your score, so it is worth taking a few minutes to verify that the closure was processed correctly.

Frequently Asked Questions

Will closing a credit card hurt my credit score?

Yes, but usually not for long. Your score will drop because your available credit decreases, raising your utilization ratio. The effect is larger if the card is old or if you have few other accounts. Most people see their score recover within a few months as they continue to pay other accounts on time.

Can I close a credit card if I still owe money on it?

Most issuers will not close an account with an outstanding balance, though some will. Either way, you will still owe the debt and will continue to pay interest. It is better to pay off the balance first, then request closure.

What happens to my rewards points when I close the card?

It depends on the issuer. Some let you redeem rewards after closure, and others do not. Ask the customer service representative what happens to your balance before you request closure, and redeem anything you want to keep.

How long does it take to close a credit card?

The closure is usually processed within a few days, but you should receive written confirmation within one to two weeks. Do not assume the account is closed until you have that confirmation in hand.

Should I close old credit cards or keep them open?

Keep them open if there is no annual fee. Old accounts help your credit score because they show a long history of responsible use. Closing an old card removes that history and can lower your score more than closing a newer card would.