The basic steps to cancel a credit card
To cancel a credit card, call the customer service number on the back of your card and tell the representative you want to close the account. They will ask you why you're canceling and may offer you a retention offer to keep the card open. If you decline, they will process the cancellation when ready. The card issuer will send you written confirmation within a few days.
Before you call, pay off any remaining balance on the card. If you have a balance when you cancel, you'll still owe it, and the issuer will continue charging interest until it's paid. Some people cancel with a balance intentionally, but this costs you money and keeps the account active longer than necessary.
After cancellation, your account will show as "closed by consumer" on your credit report. This stays visible for about seven years but has less impact on your credit score than an account closed by the issuer due to non-payment.
Key Takeaways
- Call the number on the back of your card and ask to close the account; the issuer will process it the same day.
- Pay off your full balance before canceling so you don't continue paying interest on a closed account.
- Canceling a card lowers your available credit, which can raise your credit utilization ratio and temporarily lower your score.
- Request written confirmation of the cancellation and check your credit report a month later to confirm the account shows as closed.
Why canceling a card affects your credit score
Closing a credit card reduces the total credit available to you. If you have other cards with balances, your credit utilization ratio—the percentage of your available credit you're actually using—goes up. A higher utilization ratio can lower your credit score by 10 to 50 points, depending on how much credit you're using on your remaining cards.
For example, if you have two cards with $5,000 limits each ($10,000 total available) and a $3,000 balance, your utilization is 30 percent. If you cancel one card, your available credit drops to $5,000, and your utilization jumps to 60 percent. This change happens when ready after cancellation.
The impact is temporary. Your score usually recovers within a few months as long as you keep your remaining balances low and make on-time payments. The closed account itself stays on your report for seven years but counts less toward your score as time passes.
What to do before you call to cancel
Check your credit card statement for any recurring charges linked to the card—subscriptions, insurance, or automatic payments you may have forgotten about. Contact those companies to update your payment method before you cancel, or you'll miss payments and damage your credit.
Pay off the full balance if you can. If you can't, pay as much as possible. You'll still owe the remaining balance after cancellation, and interest will continue to accrue on it.
Gather your account number and any other information the issuer might ask for, though most will have this in their system when you call. If you're canceling because of fraud or unauthorized charges, have those details ready to explain.
Consider whether you want to keep the card open instead. If you have no annual fee and no balance, keeping it open preserves your available credit and helps your utilization ratio. Closed accounts eventually fall off your report, but open accounts with zero balances help your score indefinitely.
How to handle rewards points and cash back before canceling
Most issuers let you redeem rewards before you cancel, and some will let you redeem them after, though policies vary. Call customer service and ask about your specific card's policy before you close the account.
If you have cash back pending, request it before you cancel. Some cards deposit pending cash back automatically on your statement date, but others hold it until you request it. If you cancel before redeeming, you may lose the balance depending on the card's terms.
For points-based rewards, check whether they expire after cancellation. Many programs let you keep your points for a set period after closing, but some void them when ready. If you have a large balance of points, redeem them for a statement credit or transfer them to a partner program before you cancel.
What happens after you cancel
The card issuer will deactivate your card within hours of your call. You won't be able to use it, and any pending transactions may be declined. If you have automatic payments set up on that card, they will fail, so update those payment methods beforehand.
You'll receive written confirmation of the cancellation by mail within 5 to 10 business days. Keep this letter in case you need proof that you closed the account. Some issuers also send confirmation by email if you have that on file.
Check your credit report one month after cancellation to confirm the account shows as "closed by consumer." You can view your credit report for free once per year at annualcreditreport.com. If the account shows as closed by the issuer instead, contact the issuer to correct it.
When to cancel versus when to keep a card open
Cancel a card if it has an annual fee you don't want to pay and the issuer won't waive it. Call and ask if they'll remove the fee before you cancel—many will for long-time customers. If they refuse and you don't use the card, canceling makes sense.
Keep a card open if it has no annual fee, even if you don't use it. The available credit helps your score, and there's no cost to you. Use it occasionally for a small purchase to keep the account active, or set up a recurring charge you already pay for (like a streaming service) and pay it off monthly.
Cancel a card if you're trying to reduce the temptation to overspend. If keeping the card open makes you more likely to carry a balance, the short-term credit score hit is worth the long-term savings on interest.
Frequently Asked Questions
Will canceling a credit card hurt my credit score?
Yes, but usually only temporarily. Your score may drop 10 to 50 points when ready because your available credit decreases and your utilization ratio rises. The impact fades within a few months if you keep your other balances low and make on-time payments. The closed account stays on your report for seven years but counts less toward your score over time.
Can I cancel a credit card over email or through the website?
Most issuers require you to call customer service to cancel. Calling creates a record of your request and lets you ask questions about your account. Some issuers may offer cancellation through their mobile app or website, but calling is the most reliable method and gives you when ready confirmation.
What if I have a balance when I cancel?
You'll still owe the balance after cancellation, and interest will continue to accrue until you pay it off. The account stays open in the issuer's system until the balance reaches zero. Pay off the balance as quickly as possible to stop paying interest and fully close the account.
How long does it take for a canceled card to stop showing on my credit report?
A closed account stays on your credit report for seven years from the date it was closed. It counts less toward your score as time passes, but it remains visible to lenders during that period. After seven years, it falls off automatically.
Should I cut up my card after I cancel it?
Yes. After the issuer confirms the cancellation, cut up or shred the card to prevent accidental use. The card will be deactivated and won't work, but destroying it removes any chance of confusion or fraud.