The basic steps to close a credit card account
Call the customer service number on the back of your card and tell them you want to close the account. Have your card number ready. The representative will ask why you're closing it — you don't have to give a detailed reason, but they may offer you a lower interest rate or annual fee waiver to keep you. If you want to close it anyway, say so clearly. They will confirm the account is closed and give you a confirmation number. Write this down.
Before you call, pay off any balance on the card. Most issuers will not close an account with an outstanding balance, and even if they do, you'll still owe the money. After the account closes, you can no longer use the card, but you remain responsible for paying what you borrowed.
After you hang up, send a written request to the card issuer's address (usually on your statement or website). Include your account number, the date you called, the confirmation number, and a straightforward statement: "I request that this account be closed at my request." Keep a copy for your records. This creates a paper trail in case there's a dispute later about whether the account was actually closed.
Key Takeaways
- Pay off your full balance before calling to close the account, because most issuers won't close an account with money owed.
- Call the number on your card, confirm the closure with a confirmation number, and follow up with a written request to the issuer's mailing address.
- Closing a card can lower your credit score temporarily because it reduces your total available credit and may increase your credit utilization ratio on other cards.
- Your payment history on the closed card stays on your credit report for up to seven years, so closing it does not erase past mistakes or help past on-time payments.
- If you have authorized users on the account, they will lose access to the card when the account closes, even if they have their own card in their name.
Why closing a card can hurt your credit score
When you close a credit card, your credit score often drops, sometimes by 10 to 50 points or more. This happens for two reasons. First, closing the card reduces your total available credit. If you had a $5,000 limit and you close that card, your available credit shrinks by $5,000. Second, if you carry balances on other cards, your credit utilization ratio goes up. Credit utilization is the percentage of your total available credit that you're actually using. If you owe $2,000 across your remaining cards and your total available credit drops from $15,000 to $10,000, your utilization jumps from 13% to 20%. Credit scoring models treat higher utilization as riskier.
The damage is usually temporary. As you pay down balances on your other cards, your utilization ratio improves and your score recovers. But if you close a card right before explore for a mortgage or car loan, you may face a higher interest rate because your score is temporarily lower.
When closing a card makes sense
Close a card if you're paying an annual fee and you don't use the card enough to justify it. Close it if the card issuer has raised your interest rate and you have better options elsewhere. Close it if you're trying to simplify your finances and you have other cards with better rewards or lower rates.
Do not close a card just because you want to improve your credit score — closing it usually makes your score worse, not better. Do not close your oldest card if you can avoid it, because the length of your credit history matters to your score, and closing old accounts shortens your average account age. If the card has no annual fee, you can straightforward stop using it and leave it open. Unused accounts don't hurt your score the way closed accounts do.
What happens to rewards points and cash back
Check your card's terms before you close it. Most issuers let you redeem rewards points or cash back after the account closes, but the window is limited — often 30 to 90 days. Some cards let you redeem indefinitely; others delete your rewards when the account closes. Call the issuer and ask specifically what happens to your rewards before you close the account. If you have a large balance of points, redeem them first.
If you have a card with a sign-up bonus that you haven't met yet, closing the account before you meet the bonus requirements usually means you forfeit the bonus. If you're close to meeting it, finish spending first, then close.
How to handle authorized users
If you added other people to your account as authorized users, they will lose access to the card when you close the account. Their own credit may also be affected because the account will disappear from their credit report. If the authorized user is a family member or spouse, tell them before you close the account so they're not surprised when their card stops working.
If you want to remove an authorized user without closing the account, call the issuer and ask them to remove that person. The account stays open, and you keep using the card.
What to do after the account closes
Monitor your credit report for the next few months. You can get a free copy of your credit report from each of the three major credit bureaus — Equifax, Experian, and TransUnion — once per year at annualcreditreport.com. Check that the closed account shows as "closed at consumer's request" or "closed by consumer." If it shows as closed by the issuer or in a negative way, contact the bureau and dispute it.
Keep paying your other credit cards on time. Your payment history is the biggest factor in your credit score, and on-time payments will help your score recover from the temporary dip caused by closing the card. Do not close multiple cards in a short period, because each closure can lower your score, and multiple closures in a row can signal financial distress to lenders.
Alternatives to closing a card
If you're closing a card because you don't use it, consider keeping it open instead. Use it once or twice a year for a small purchase, then pay it off when ready. This keeps the account active and prevents the issuer from closing it for inactivity. The account stays on your credit report, your available credit stays high, and your credit utilization stays low.
If you're closing a card because of an annual fee, call the issuer first and ask if they'll waive the fee. Many issuers will waive the fee for a year or two if you ask, especially if you've been a customer for a long time or if you have other accounts with them. This costs you nothing and keeps your credit score from dropping.
If you're closing a card because the interest rate is too high, you don't have to close it. You can straightforward stop using it and pay off the balance over time. Once the balance is zero, the interest rate doesn't matter anymore.
Frequently Asked Questions
Will closing a credit card remove it from my credit report?
No. The closed account will stay on your credit report for up to seven years. It will show as closed, but it will still be visible to lenders and credit bureaus. This is actually good — the account history, including your payment record, remains part of your credit history.
Can I reopen a credit card after I close it?
It depends on the issuer. Some issuers will reopen a closed account if you ask within a certain period, usually 30 to 60 days. Others treat a closed account as permanently closed and require you to explore for a new account. Call the issuer and ask. If you reopen the account, your credit limit may be lower than before.
What if the credit card company won't close my account?
This is rare, but it can happen if you have a balance on the card. Pay off the balance first, then call again. If the issuer still refuses, send a written request certified mail to their mailing address. Keep copies of all correspondence. If the account still doesn't close, contact your state's attorney general or the Consumer Financial Protection Bureau.
Does closing a credit card hurt my credit more than missing a payment?
Yes. A missed payment can lower your score by 100 points or more and stays on your report for seven years. Closing a card lowers your score temporarily, usually by 10 to 50 points, and the damage fades as you rebuild your credit. If you're choosing between the two, close the card.
Should I close old credit cards to improve my credit?
No. Closing old cards usually lowers your score because it shortens your average account age. Your credit history length is about 15% of your score. Keep old cards open, even if you don't use them, to maintain a longer credit history.