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 ask to speak with a representative about closing the account. Have your card number ready. The representative will confirm your identity, ask why you want to cancel, and process the closure. Some card issuers also let you cancel through their website or mobile app, though a phone call creates a record of the request.
Before you call, pay off any remaining balance on the card. Most issuers will not close an account with an outstanding balance, and even if they do, you will still owe the debt. After the account closes, destroy the physical card by cutting it in half or shredding it so it cannot be used.
The closure typically takes effect when ready, though it may take a few days to appear on your credit report. You will receive a written confirmation in the mail within one to two weeks.
Key Takeaways
- Pay off your full balance before calling to cancel, because most issuers will not close an account with money owed.
- Call the customer service number on the back of your card and ask to close the account; have your card number ready.
- Closing a card can lower your credit score temporarily because it reduces your total available credit, even if you pay on time.
- Closing an old card hurts your score more than closing a new one, so consider keeping older accounts open if you have no annual fee.
- After closure, destroy the physical card and watch your credit report for the next few months to confirm the account shows as closed.
Why closing a card affects your credit score
Closing a credit card lowers your credit score in most cases, even if you have never missed a payment. The main reason is your credit utilization ratio — the percentage of your total available credit that you are currently using. When you close a card, your available credit shrinks, which makes your utilization ratio go up. For example, if you have two cards with $5,000 limits each and a $3,000 balance spread across both, your utilization is 30 percent. If you close one card, your available credit drops to $5,000, and your utilization jumps to 60 percent — even though you did not charge anything new.
The impact is usually temporary. Your score will recover over several months as you continue to pay on time and your utilization ratio improves. Closing a very old card hurts more than closing a new one, because the age of your accounts also affects your score. If the card you want to cancel is less than two years old and you have other older cards, closing it will have less impact.
If the card has an annual fee and you do not use it, closing it makes sense. If there is no annual fee, you may want to keep it open and unused — the account will still help your available credit and age of accounts without costing you anything.
What to do before you call
Check your credit card statement to see if you have any pending charges or subscriptions tied to this card. Many people forget about recurring payments — streaming services, gym memberships, insurance premiums — that charge automatically each month. If you cancel the card while these are still active, the charges will fail and you may face late fees or service interruptions. Update any subscriptions to a different payment method at least one week before you cancel.
Pay the full balance in full. If you carry a balance, the issuer may refuse to close the account until it is paid off. Even if they do close it, you will still owe the debt and will continue to pay interest until it is gone. Paying it off first also means you will not have to deal with the card issuer after closure.
Write down the account number, the date you called, and the name of the representative who processed your request. This creates a record in case there is a dispute later about whether the account was actually closed.
Timing: when to cancel and when to wait
Avoid canceling a card right before you plan to explore for a loan, mortgage, or another credit card. Closing an account can temporarily lower your score by 10 to 50 points, depending on how old the card is and how much credit you have available. If you are planning to borrow money in the next three to six months, wait until after you have been approved and the new loan is funded.
If you have just opened a new card to take advantage of a sign-up bonus or promotional rate, do not cancel your old card when ready. Wait at least six months to a year before closing the old one. Closing cards too quickly can signal to lenders that you are opening and closing accounts frequently, which may hurt your ability to borrow in the future.
There is no penalty for canceling a card you have had for many years, as long as you do not need to borrow money soon. In fact, if the card has an annual fee or a high interest rate you no longer need, closing it sooner rather than later saves you money.
After the card is closed: what to watch for
Check your credit report two to four weeks after you cancel to confirm the account shows as closed. You can view your credit report for free once per year at AnnualCreditReport.com, which is the official site run by the three major credit bureaus. The account should show a status of "closed by consumer" or "closed at consumer's request." If it shows anything else — such as "closed by creditor" — contact the issuer to correct it.
Continue to monitor your credit report for the next few months. Occasionally, a closed account will reappear on your report or the issuer will report it incorrectly. If you spot an error, contact the credit bureau in writing and ask them to investigate. Keep a copy of your cancellation confirmation letter as proof.
Do not be alarmed if your credit score drops slightly after closure. This is normal and temporary. Your score will begin to recover within a few months as long as you continue to pay your other accounts on time and keep your utilization ratio low on remaining cards.
Canceling a card with a balance or rewards points
If you have a balance on the card, you have two options: pay it off before canceling, or ask the issuer if you can keep the account open while you pay it down. Some issuers will allow you to close the account for new charges while keeping it open to pay the existing balance. This prevents you from accidentally charging more while you are trying to pay it off.
Redeem any rewards points or cash back before you cancel. Once the account is closed, you may lose access to your rewards balance, depending on the issuer's policy. Check your cardholder agreement or call customer service to find out what happens to your points after closure. Some issuers let you redeem points for a set period after the account closes; others delete them when ready.
If you have a large rewards balance, use it to pay down your balance before you cancel. For example, if you have 50,000 points worth $500 in cash back and a $3,000 balance, redeem the points as a statement credit first, then pay the remaining $2,500 in cash.
Alternatives to canceling if you want to keep the account open
If you are canceling because of an annual fee, call the issuer and ask if they will waive it. Many issuers will reduce or eliminate the fee if you have been a long-time customer or if you threaten to close the account. It costs the issuer less to waive a fee than to lose a customer, so it is worth asking.
If you are canceling because you do not use the card, consider keeping it open with zero balance. The account will still help your credit score by adding to your available credit and keeping your average account age higher. As long as there is no annual fee, there is no cost to leaving it open.
If the card has a high interest rate and you are worried you might use it, you can ask the issuer to lower the rate before you cancel. Some issuers will negotiate, especially if you have been a good customer. If they will not budge on the rate, canceling is the right move to avoid the temptation to carry a balance.
Frequently Asked Questions
Will canceling a card hurt my credit score?
Yes, usually by 10 to 50 points depending on how old the card is and how much credit you have available. The impact is temporary and your score will recover within a few months if you continue to pay on time. Closing a very old card hurts more than closing a new one.
Can I cancel a card over the phone or do I have to go to a branch?
You can cancel over the phone by calling the number on the back of your card. Most issuers also allow cancellation through their website or app. You do not need to visit a branch in person.
What happens to my rewards points after I cancel?
This depends on the issuer. Some let you redeem points for a period after closure; others delete them when ready. Check your cardholder agreement or call customer service before you cancel to find out the policy. Redeem your points before closing if possible.
Should I cancel my oldest credit card or my newest one?
Cancel your newest card if you must cancel one. Older accounts help your credit score more because they show a longer history of responsible borrowing. If the older card has no annual fee, keep it open even if you do not use it.
How long does it take for a canceled card to stop showing on my credit report?
A closed account will stay on your credit report for seven to ten years. It will show as closed, and it will no longer affect your credit score after a few months. The account remains visible to lenders as part of your history, which is actually helpful because it shows you managed the account responsibly.