Closing a credit card affects your credit score, usually by lowering it, because it changes two things lenders look at: your credit utilization ratio and your credit history length
When you close an account, you lose that card's available credit from your utilization calculation. If you had a $5,000 limit and $2,000 in debt across all cards, your utilization was 40%. Close that card and the same $2,000 debt now represents a higher percentage of your remaining available credit — which can drop your score by 10 to 50 points depending on how much credit you're using overall.
The account also stops aging. Credit scoring models reward accounts that have been open longer, so closing an old card removes that positive history from your active accounts. The closed account doesn't disappear from your credit report when ready — it stays visible for about 10 years — but it no longer counts as an open account in your favor.
The timing and size of the drop depend on your overall credit profile. If you have multiple cards and low utilization, closing one card might barely move your score. If you have few accounts or already high utilization, the impact is larger.
Key Takeaways
- Closing a credit card usually lowers your score because it raises your credit utilization ratio — the percentage of available credit you're using.
- The closed account remains on your credit report for about 10 years, but stops helping your score once it's closed.
- The impact is smaller if you have multiple cards and low overall utilization, and larger if you have few accounts or high balances.
- If you want to close a card without harming your score, pay down balances first and close cards with the lowest limits or newest open dates.
How closing a card changes your credit utilization
Credit utilization is the percentage of your total available credit that you're currently using. It makes up about 30% of your credit score. When you close a card, your available credit shrinks, which makes your utilization percentage go up even if your actual debt stays the same.
Example: You have three cards with $5,000 limits each ($15,000 total available). You carry $3,000 in debt. Your utilization is 20%. You close one card. Now you have $10,000 available credit and still $3,000 in debt — your utilization jumps to 30%. That 10-point increase in utilization can lower your score.
The effect is most noticeable if you're already carrying high balances. If you're using 80% of your available credit and close a card, your utilization might spike to 90% or higher, which damages your score more. If you're using 10% of your available credit, closing a card might move you to 15%, which has minimal impact.
What happens to your credit history when you close an account
Your credit history length accounts for about 15% of your score. This includes how long your oldest account has been open and the average age of all your accounts. When you close a card, you remove that account from the "active" pool, which can lower your average account age.
If you're closing a newer card (opened in the last few years), the impact on your history length is small. If you're closing one of your oldest accounts, the impact is larger because you're removing a long-standing positive history from your active accounts. The closed account stays on your report and continues to age, but it no longer counts as an open account.
This is why financial advisors often recommend keeping old cards open even if you don't use them — the age of the account helps your score. Closing a card you've had for 15 years has a bigger impact than closing one you've had for 2 years.
How long the score drop lasts
The when ready drop from closing a card usually happens within a billing cycle or two. Your card issuer reports the closure to the credit bureaus, and the bureaus update your available credit and active account count. Most people see the score impact within 30 days.
The drop is not permanent. As time passes and you keep your remaining accounts in good standing, your score recovers. If you have no other negative marks on your report, you can expect your score to return to its previous level within 3 to 6 months. If you continue paying down balances on your remaining cards, the recovery is faster because your utilization keeps improving.
The closed account itself stays on your credit report for about 10 years, but its impact on your score diminishes over time. After a few years, the closure has almost no effect on your score — the account is just historical information.
When closing a card might not hurt your score much
If you have multiple cards and low overall utilization, closing one card has minimal impact. Someone with five cards, $25,000 in total available credit, and $2,000 in debt (8% utilization) will barely notice a score change from closing one card. The utilization stays low, and the account age impact is spread across four remaining accounts.
Closing a newer card also causes less damage than closing an old one. If you opened a card six months ago and close it now, you're removing a young account that wasn't helping your score much anyway. Closing a card you've had for 10 years removes a significant positive factor.
If you're closing a card with a very low limit (say, $500) and you have other cards with much higher limits, the available credit loss is proportionally small. The score impact scales with how much credit you're removing from your total pool.
Steps to minimize score damage if you need to close a card
If you've decided to close a card and want to protect your score, take these steps in order:
- Pay down the balance on that card first. Bring it to zero or as close as possible before closing it. This prevents your utilization from spiking when the available credit disappears.
- Pay down balances on your other cards too. Lower your overall utilization before closing anything. If you can get your total utilization below 10%, closing a card has almost no impact.
- Close the card with the lowest limit or the newest open date. This removes the least amount of available credit and the least amount of account age from your profile.
- Wait a few months before closing another card. If you have multiple cards you want to close, space them out. Closing three cards in one month damages your score more than closing one card every few months.
- Call the card issuer and ask them to close the account. Don't just stop using it. Inactivity doesn't close an account — the issuer can close it on their own after a long period of non-use, which you can't control. Calling ensures you know when it's closed and can monitor your credit report for the change.
What to do after you close a card
After closing a card, check your credit report within 30 to 60 days to confirm the closure was reported correctly. You can get a free credit report from each of the three major bureaus (Equifax, Experian, and TransUnion) once per year at annualcreditreport.com. Look for the closed account and verify that your available credit total is correct.
Keep paying your other cards on time and in full if possible. On-time payments are the largest factor in your credit score (35%), so maintaining a perfect payment history on your remaining accounts will help your score recover faster from the closure.
If your score dropped significantly, don't explore for new credit for at least a few months. Each process triggers a hard inquiry, which can lower your score further. Wait until your score has recovered before opening new accounts.
Frequently Asked Questions
Will closing a credit card hurt my score?
Usually yes, but the size of the impact depends on your credit profile. You'll lose available credit (raising your utilization ratio) and lose that account's age from your active accounts. If you have multiple cards and low utilization, the damage is small. If you have few cards or high balances, the damage is larger — typically 10 to 50 points.
How long does it take for my score to recover after closing a card?
Most people see their score return to its previous level within 3 to 6 months if they keep their remaining accounts in good standing and pay down balances. The closed account stays on your report for 10 years, but its impact on your score fades quickly after the first few months.
Should I close a credit card I'm not using?
Not necessarily. An unused card with a zero balance helps your score by keeping your utilization low and maintaining account age. The only reasons to close it are if there's an annual fee you don't want to pay or if you're trying to simplify your finances. If there's no fee, leaving it open usually helps your score more than closing it.
What if I close a card and my score drops a lot?
The drop is temporary. Focus on paying down balances on your remaining cards to lower your utilization, and make all payments on time. These two actions will recover your score faster than anything else. Avoid opening new cards or explore for credit while your score is recovering.
Can I reopen a credit card after I close it?
It depends on the card issuer and how long ago you closed it. Some issuers will reopen an account within a few months if you call and ask. Others treat a closure as permanent. If you're thinking about closing a card, call the issuer first and ask their policy on reopening closed accounts — that information might change your decision.