Closing a credit card is straightforward, but the timing and method matter for your credit score

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 basic step. But closing a card affects your credit in ways that might surprise you — mainly through something called your credit utilization ratio, which is the percentage of your available credit you are actually using. When you close a card, you lose that available credit, which can make your utilization ratio jump even if you do not change how much you spend. A ratio that jumps from 30% to 50% can lower your score by 10 to 50 points, depending on your credit history.

The best time to close a card is after you have paid off the balance completely, and ideally after you have built up credit history elsewhere — usually at least a few years of on-time payments on other accounts. If you are closing the card because you want to stop using it, you do not have to close it when ready. You can stop charging, let the balance sit, and close it later once the timing is better for your score.

Key Takeaways

  • Call the card issuer's customer service line and request account closure; ask for written confirmation that the account is closed and the balance is zero.
  • Closing a card reduces your total available credit, which can raise your credit utilization ratio and lower your score by 10 to 50 points temporarily.
  • Pay off the full balance before closing; if you carry a balance, the card issuer may not close the account until it is paid in full.
  • Closing an old card hurts more than closing a new one, because age of accounts affects your score — if the card is less than two years old, closing it has less impact.
  • After closure, check your credit report in 30 to 60 days to confirm the account shows as closed and that no new charges appear.

Why closing a card affects your credit score

Your credit score is built from five main factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). Closing a card touches three of these.

The biggest hit comes from amounts owed. If you have three cards with $2,000 limits and you use $1,500 across all of them, your utilization is 25% ($1,500 divided by $6,000). If you close one $2,000 card, your available credit drops to $4,000, and your utilization jumps to 37.5% ($1,500 divided by $4,000). That shift alone can lower your score. The damage is temporary — your score will recover as you pay down the balance — but it happens when ready when the account closes.

The second factor is length of credit history. If the card you are closing is your oldest account, closing it shortens your average account age, which can lower your score by 5 to 15 points. If it is a newer card, the impact is smaller. The third factor is credit mix — having both revolving credit (credit cards) and installment credit (car loans, personal loans) is better than having only one type. Closing your only credit card removes that mix, though the impact is usually small unless you have very few accounts.

Steps to close your account

Call the customer service number on the back of your card. You do not need to visit a branch or send a letter, though you can do either if you prefer. Have your account number ready.

Tell the representative you want to close the account. They may ask why, and they may offer you a lower interest rate or other incentive to keep it open. You can accept or decline. If you want to close it, say so clearly.

Ask the representative to confirm three things: that the account is closed, that your balance is zero (or that you understand what you still owe), and that no new charges can be made. Ask them to send you written confirmation by mail or email. This confirmation is your proof that you requested closure, which matters if a charge appears later or if the account does not close for some reason.

Do not cut up the card when ready. Wait for the written confirmation, then cut it up. If something goes wrong — the account does not close, or a charge appears — you will have the card number to reference.

What to do if you still have a balance

If your card has a balance when you call to close it, the issuer will usually not close the account until the balance is paid. You have two options: pay the balance first, then call to close, or ask the representative if you can close the account while making payments.

Most issuers will close the account even with a small balance, but they will keep charging interest until it is paid. Some will freeze the account so no new charges can be made, but interest still accrues. The safest approach is to pay the balance in full before calling, so there is no question about what happens next.

If you are closing the card because you are in financial hardship, tell the representative. Some issuers have hardship programs that lower your interest rate or waive fees while you pay down the balance. These programs sometimes require you to stop using the card, which is close to closing it anyway — but the account stays open, so your available credit stays the same and your score takes less damage.

Timing: when to close and when to wait

Close a card after you have paid it off completely. If you are carrying a balance, the damage to your score from closing is usually smaller than the damage from the high balance itself, so paying it down matters more than keeping the account open.

If the card is new — less than two years old — closing it has less impact on your credit history length than closing an older card. If you have a newer card you do not use and an older card you do use, close the newer one first.

If you are planning to explore for a loan or mortgage in the next three to six months, wait to close the card. Your score will dip when you close it, and lenders look at your score at the time you explore. If you can wait, close the card after you have locked in your loan rate.

If you have only one credit card, closing it removes your revolving credit entirely. Consider opening a second card and using it for small purchases before you close the first one. This keeps your credit mix intact and spreads your utilization across two accounts, which looks better to lenders.

What happens after you close the account

The account will show as closed on your credit report, usually within 30 days. The credit bureaus — Equifax, Experian, and TransUnion — will receive notice from the issuer and update their records. You can check your credit report for free once a year at annualcreditreport.com, which is the official site run by the three bureaus.

Your score will drop when ready when the account closes, but it will recover over time as you continue to make on-time payments on your other accounts and as your utilization ratio improves. Most people see their score return to its previous level within three to six months.

After closure, watch for any charges on the account. If a charge appears after you have closed it, contact the issuer when ready. Also check that the account does not reopen. Some issuers will reopen a closed account if a charge is posted to it, which can happen if a subscription or automatic payment was still linked to the card.

Alternatives to closing: when to keep the card open

If you do not want to use a card but do not want to close it, you can straightforward stop charging. Leave the account open with a zero balance. This keeps your available credit intact, which keeps your utilization ratio low, and it preserves your account age. The only downside is that the issuer may close the account for inactivity after 12 to 24 months of no charges. If that happens, you can call and ask them to reopen it, or you can make a small charge every few months to keep it active.

If you are closing the card because you are worried about overspending, consider asking the issuer to lower your credit limit instead. A lower limit reduces the temptation to spend while keeping the account open and your available credit intact.

If you are closing because of high fees, call and ask if the issuer has a different card with no annual fee. You can sometimes switch to a different product without closing the original account, which preserves your account age.

Frequently Asked Questions

Will closing a credit card hurt my credit score?

Yes, temporarily. Your score will drop by 10 to 50 points when you close the account, mainly because your available credit decreases and your utilization ratio rises. The damage is usually temporary — most people see their score recover within three to six months of continued on-time payments. Closing an older card hurts more than closing a newer one.

Can I close a credit card over the phone?

Yes. Call the customer service number on the back of your card and tell the representative you want to close the account. Ask for written confirmation by mail or email. You do not need to visit a branch or send a letter, though you can if you prefer.

What if the credit card company won't let me close my account?

Most issuers will close an account on request, but some may ask you to pay off the balance first if you still owe money. If the issuer refuses to close the account after you have paid the balance, ask to speak to a supervisor. If they still refuse, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.

Should I close old credit cards or new ones first?

Close newer cards first if you have a choice. Closing an old card shortens your average account age, which hurts your score more than closing a newer card. If the card is less than two years old, closing it has less impact on your credit history than closing a card that is five or ten years old.

What should I do with the physical card after I close the account?

Wait for written confirmation that the account is closed, then cut up the card or shred it. Do not throw it away whole, because the card number is visible. Waiting for confirmation ensures the account actually closed before you destroy the card — if something goes wrong, you will still have the number to reference.