The basic steps to close a credit card account
To close a credit card account, call the customer service number on the back of your card, confirm your identity, and ask to close the account. The representative will usually ask why you're closing it and may offer you a retention offer. You can accept or decline. Once you confirm you want to proceed, the account closes immediately, though the card issuer may take a few days to process the closure on their end.
Some issuers also let you close an account through their mobile app or online portal under account settings, though phone closure is more reliable because you get a confirmation number and can ask questions in real time. If you close online, take a screenshot of the confirmation page.
Before you call, pay off any remaining balance. Most issuers won't close an account with an outstanding balance, and even if they do, you'll still owe the debt. After closure, keep the account open in your records for at least a year — you may need proof of closure for disputes or credit reporting issues.
Key Takeaways
- Call the customer service number on your card and ask to close the account; have your account number and ID ready.
- Pay off your full balance before closing, because most issuers won't process closure with money owed.
- Closing a card reduces your total available credit, which can raise your credit utilization ratio and temporarily lower your credit score.
- The closed account will stay on your credit report for seven to ten years, so the damage fades over time as long as you pay other accounts on time.
- If you're closing a card with an annual fee, call before the fee posts to avoid paying it, or call immediately after to request a refund.
Why closing a card affects your credit score
Closing a credit card lowers your credit utilization ratio — the percentage of your total available credit that you're currently using. If you have two cards with $5,000 limits each ($10,000 total) and carry a $2,000 balance, your utilization is 20%. If you close one card, your total limit drops to $5,000, and your utilization jumps to 40%. Credit scoring models treat higher utilization as riskier, so your score typically drops by 10 to 50 points depending on how much credit you're closing and how much you're currently using.
The impact is temporary. As you pay down your remaining balance on other cards, your utilization falls and your score recovers. The closed account itself stays on your credit report for seven to ten years, but it stops hurting your score after a few months of on-time payments on your other accounts.
If you're closing a card because you want to reduce temptation to overspend, that's a valid reason — but closing it won't erase the damage if you've already missed payments on it. The payment history stays on your report regardless of whether the account is open or closed.
When to close a card and when to keep it open
Close a card if you're paying an annual fee you don't use the card enough to justify, if you're trying to simplify your finances, or if you're concerned about fraud or identity theft on that specific account. You can also close a card if the issuer has changed the terms in a way you don't like — for example, if they've raised the annual fee or cut your rewards rate.
Keep a card open if you're not paying an annual fee, even if you don't use it. An open account with zero balance helps your credit utilization ratio and shows lenders you can manage credit responsibly over time. The account history (how long you've had it, whether you've paid on time) also factors into your credit score, so closing old accounts can lower the average age of your accounts.
If you're closing a card because you're about to apply for a mortgage, auto loan, or other major credit, close it at least three to six months before you apply. This gives your credit score time to recover from the utilization hit and gives you time to see whether the closure triggers any reporting errors.
How to handle an annual fee before closing
If your card has an annual fee and you want to close it, time your call strategically. If the fee hasn't posted yet this year, call before it does and ask to close the account. The fee won't post if the account is closed.
If the fee has already posted, call immediately and ask the issuer to refund it as a courtesy. Many issuers will refund a recent annual fee if you're closing the account, especially if you've been a customer for several years. They may not refund it if you're closing because you're unhappy with the card — but it costs nothing to ask. If they refuse, you can dispute the fee with your credit card company, though that's a slower process.
Some premium cards offer a grace period (usually 30 days) after the annual fee posts. Check your cardholder agreement or call and ask before the fee posts. If there's a grace period, you can close the account within that window and get the fee refunded.
What happens to rewards points and cash back after closure
Most issuers let you keep and use rewards points and cash back balances after you close the account, but the rules vary. Some require you to redeem before closure; others give you a window (usually 30 to 90 days) after closure to redeem. A few let you keep the balance indefinitely.
Before you close, check your cardholder agreement or call and ask what happens to your rewards. If you have a large balance, redeem it before you close the account to avoid any confusion. If the issuer says you have 60 days after closure to redeem, get that in writing or take a note of the representative's name and the date you called.
Some cards let you transfer rewards to a travel partner or another account (like an airline frequent flyer account) after closure. If you have a lot of points, this might be worth doing before you close rather than redeeming them for cash or a statement credit.
Closing a card with a balance or disputed charge
You can close a card with an outstanding balance, but most issuers will ask you to pay it off first. If you insist on closing with a balance, the account will close but you'll still owe the debt. The issuer will continue to charge interest and may send you statements or collection notices. Closing the account doesn't erase what you owe.
If you have a disputed charge on the card, close it only after the dispute is resolved. Once an account is closed, disputing charges becomes harder because the issuer may say the account is no longer active. Wait for the dispute decision, then close the account if you still want to.
If you're closing because of fraud, tell the issuer immediately. They may close the account for you and issue a new card, or they may close it and let you open a new account. Document the fraud report with the date and the representative's name.
How to close a joint account or authorized user card
If the card is a joint account (both you and another person are responsible for the debt), both account holders usually have to agree to close it. Call the issuer and ask about their policy. Some require both signatures on a written request; others let one person call and close it. If you're closing without the other person's consent, they may dispute the closure or hold you responsible for future charges.
If you're an authorized user on someone else's account, you can't close the account yourself. The primary account holder has to call and request removal of the authorized user. Once you're removed, the card stops working but the account stays open under the primary holder's name. If you want the account fully closed, the primary holder has to close it.
If you're the primary holder and want to remove an authorized user, call the issuer and ask them to remove the person by name and card number. The issuer will deactivate their card immediately. The account itself stays open.
What to do after you close the account
After closure, monitor your credit report for the next few months to make sure the account shows as closed and that no new charges appear. You can check your credit report free once a year at annualcreditreport.com, which is run by the three major credit bureaus (Equifax, Experian, and TransUnion). If the account doesn't show as closed within 30 days, call the issuer and ask them to confirm the closure date.
If you had automatic payments set up on the closed card (like a subscription or utility bill), update those payments to a different card or account before closure. The issuer will decline charges after the account closes, which could trigger late fees or service interruptions.
Keep your final statement and any closure confirmation for your records. If you ever need to prove the account is closed (for a dispute, a fraud claim, or a credit application), you'll have documentation.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, temporarily. Closing a card reduces your total available credit, which raises your credit utilization ratio and typically lowers your score by 10 to 50 points. The impact fades within a few months as you pay down balances on other cards. The closed account stays on your report for seven to ten years but stops affecting your score after the first few months.
Can I reopen a credit card after I close it?
It depends on the issuer. Some will reopen a recently closed account if you call within 30 to 60 days. Others treat a closure as permanent and require you to apply for a new account. Call the issuer and ask before you close if you think you might want to reopen it.
What if the issuer won't close my account?
Most issuers will close an account if you ask, but a few may refuse if you have a balance or a pending dispute. Pay off any balance first, then call again. If they still refuse, ask to speak to a supervisor and explain that you want the account closed. Document the date, time, and representative's name.
Do I have to destroy the physical card after closing?
You should cut it up or shred it so it can't be used, but the account closure itself is what matters. The physical card becomes useless once the account closes, but destroying it prevents accidental use or theft.
How long does it take for a closed account to stop showing on my credit report?
A closed account stays on your credit report for seven to ten years from the date of closure. It stops affecting your credit score after a few months, but it remains visible to lenders during that entire period. This is normal and expected.