The short answer: usually no, but it depends on the card's annual fee
Closing a credit card you don't use will hurt your credit score in most cases, even if you never carried a balance on it. The damage comes from two things: your total available credit shrinks, which raises your credit utilization ratio, and your average account age drops if it was an older card. Both of those factors matter to credit scoring models.
The main reason to close a card is if it charges an annual fee and you're not getting value from rewards or benefits. If the card is free to keep open, leaving it alone costs you nothing and protects your score. If it does charge a fee, weigh that yearly cost against the hit to your credit — which could raise your borrowing costs on other accounts.
Key Takeaways
- Closing a card lowers your available credit and raises your utilization ratio, which typically drops your credit score by 10 to 50 points or more.
- The older the card, the more damage closing it does, because credit age is part of your score calculation.
- If the card has no annual fee, keeping it open costs nothing and protects your score.
- If the card charges an annual fee, close it only if the fee exceeds the value of any rewards or benefits you could earn by using it occasionally.
- If you do close a card, pay off the balance first and request the closure in writing so you have proof.
How closing a card affects your credit score
Your credit score depends partly on credit utilization — the percentage of your total available credit that you're currently using. If you have $10,000 in available credit across all cards and you're carrying a $2,000 balance, your utilization is 20 percent. Close a card with a $5,000 limit and your available credit drops to $5,000, making that same $2,000 balance look like 40 percent utilization. Higher utilization signals risk to lenders, so your score drops.
The second hit comes from account age. Credit scoring models reward you for a long history of responsible borrowing. If you close an old card, the average age of your accounts falls, which also lowers your score. A card you've held for 10 years matters more than one you've had for two.
The exact damage varies. Closing a newer card with a small limit might cost you 10 to 20 points. Closing an old card with a large limit could cost 50 points or more. That drop usually recovers over time as you build new positive history, but it takes months.
When keeping a card open makes sense
If the card charges no annual fee, there is almost no reason to close it. The card issuer wants you to keep it open — they make money if you ever use it, and they hold your account data. You pay nothing. The card sitting in a drawer or deleted from your wallet costs you zero dollars and protects your credit profile.
You don't have to use the card regularly to benefit from keeping it open. Some people put a small recurring charge on an unused card — a streaming service or a phone bill — and pay it off monthly. This keeps the account active without requiring you to think about it. Others straightforward leave it alone. Both approaches preserve your available credit and account age.
The only maintenance you need is occasional: check the account online once or twice a year to make sure there's no fraud, and watch for any changes to the terms. Card issuers sometimes add annual fees to cards that previously had none, though they usually give you notice and a chance to downgrade to a no-fee version.
When closing a card makes financial sense
Close the card if it charges an annual fee and you're not using the rewards or benefits enough to justify that cost. A card that charges $95 a year is worth closing if you're not earning at least $95 in cash back or travel credits annually. Do the math: if the card gives 2 percent cash back and you'd need to spend $4,750 a year to break even, and you're spending nothing, close it.
Some cards offer benefits beyond rewards — travel insurance, purchase protection, airport lounge access. If you travel regularly and use those perks, the fee might be worth it. If you don't, it's not. Be honest about what you actually use, not what you think you might use someday.
Before you close the card, check whether a downgrade is available. Many issuers will convert a premium card (with an annual fee) to a basic version of the same card (with no fee) rather than lose you as a customer. This keeps the account open and preserves your credit history without costing you anything. Call the card issuer and ask whether a no-fee version exists.
The right way to close a card if you decide to
If you've decided the annual fee isn't worth it and no downgrade is available, close the card properly. First, pay off any balance on the card. You can still close an account with a balance, but it's cleaner to pay it off first, and it prevents interest charges while the account is closing.
Call the card issuer's customer service number on the back of the card or on your statement. Tell them you want to close the account. They may offer you a fee waiver or a downgrade to keep you — listen to the offer, but don't let them pressure you if you've already decided. After you hang up, send a written request to the address on your statement or through your online account, saying something like: "I request that my account [account number] be closed as of [date]." Keep a copy for your records.
After closing, monitor your credit report for a few months to make sure the account shows as closed by you, not by the issuer. You can check your credit report free once a year at annualcreditreport.com. If the issuer reports it as closed by them, contact them to correct it — that distinction can matter to lenders.
Alternatives to closing: downgrade or freeze
Before you close, explore a downgrade. Call and ask whether the card can be converted to a no-fee version. Most major issuers offer this, and it takes a few minutes. You keep the account history, the available credit, and the age — and you pay nothing.
If you're worried about fraud or overspending on an unused card, you can also ask the issuer to freeze the account or reduce the credit limit. Some issuers will do this without closing the account, which protects your score while giving you peace of mind. The card stays on your credit report, your available credit is preserved, and you can unfreeze it later if you want to use it again.
What happens to rewards points when you close a card
Check your card's terms before closing. Most issuers let you keep rewards points or cash back you've already earned, even after you close the account. You can usually redeem them for several months after closure. Some cards expire points when ready upon closure, so read the fine print or call and ask before you close.
If you have a large balance of points, redeem them before you request closure. Don't assume the issuer will let you redeem them afterward — some will, some won't, and the terms vary by card. Once you've cashed out your rewards, then close the account.
Frequently Asked Questions
Will closing a credit card hurt my credit score?
Yes, usually by 10 to 50 points or more, depending on the card's age and credit limit. The damage comes from losing available credit and lowering your average account age. The hit is temporary — your score typically recovers within a few months as you build new positive history.
How long does it take for my credit score to recover after closing a card?
Most of the damage recovers within three to six months, especially if you keep your remaining balances low and make on-time payments. The full recovery depends on your overall credit profile and how much damage the closure caused.
Can I reopen a card after I close it?
Sometimes. If you closed it recently and in good standing, the issuer may reopen it. If it's been more than a few months, they usually treat a new request as a new process, which triggers a hard inquiry on your credit. Call the issuer and ask whether they can reopen your old account instead of opening a new one.
What if I close a card and then need the credit limit?
You lose access to that credit. If you might need it later, downgrade to a no-fee version instead of closing. If you've already closed it, you can request a new card from the same issuer, but they'll run a new credit check and may offer a lower limit than you had before.
Should I close old cards or new cards first?
If you must close a card, close a newer one with a smaller limit. Older cards are worth more to your credit score because of their age. Closing a card you've had for 15 years does more damage than closing one you've had for two years.