Blog Post: How to Close a Credit Card Without Hurting Your Credit Score

Sophie Carter

May 1, 2025

When Should You Close a Credit Card?

Before deciding to close a card, consider these scenarios:

High Annual Fees or Poor Service: If your card charges excessive fees or the issuer has poor customer support, it’s worth closing.
Low Usage and Low Credit Limit: If you rarely use the card and it has a small credit limit, it may not benefit your credit score.
You’ve “Graduated” to a Permanent Card: Secured cards (e.g., for building credit) are meant to be temporary. Once you’ve proven your ability to manage credit, consider switching to an unsecured card.
Life Changes: Divorce, separation, or a spouse’s passing may require you to close joint accounts.
Suspected Fraud or Security Risks: If your card has been compromised or poses a security threat, closing it is a necessary step.

How to Close a Credit Card Without Damaging Your Credit Score

If you decide to close a card, follow these steps to protect your credit:

1. Pay Off or Transfer Balances

Before closing, ensure your balance is zero. Carrying debt on other cards could spike your credit utilization ratio (the percentage of your available credit you’re using), which harms your score.

2. Review Your Credit Utilization

If the card has a high credit limit and you carry balances on other cards, closing it could increase your utilization. Consider paying down other balances first to maintain a low ratio.

3. Consider the Age of the Account

Closing your oldest credit account can shorten your average account age, which negatively impacts your score. If possible, close a newer card instead.

4. Redeem Rewards or Points

Before closing, redeem any cashback, points, or miles. You don’t want to lose them when the card is canceled.

5. Inform the Issuer and Confirm Closure

Call the card issuer’s customer service number (found on the back of the card) to request closure. Confirm in writing that the account is closed to avoid errors.

6. Monitor Your Credit Report

Check your credit report (free via AnnualCreditReport.com) to ensure the card is removed and your score remains stable.

Alternatives to Closing Your Credit Card

If you’re unsure about closing, consider these options:

Downgrade to a No-Fee Card: Switch to a card with lower fees or no annual charge.
Keep the Card in a Secure Place: Store the card in a safe or a locked drawer to avoid misuse.
Use It Sparingly: Charge small, recurring purchases (e.g., subscriptions) to keep the account active and maintain your credit history.

Key Takeaways

Credit Utilization Matters: Closing a card with a high limit could raise your utilization if you have balances on other cards.
Longer Credit History is Better: Closing an older account may shorten your credit history, which is a factor in your score.
Plan Ahead: Always review your financial situation before closing a card.

Final Thoughts

Closing a credit card isn’t inherently bad, but it requires careful consideration. By understanding how your credit score is influenced and taking proactive steps, you can protect your financial health. If you’re unsure, consult a credit counselor or financial advisor to tailor a plan that works for your unique situation.

Remember: Your credit score is a reflection of your financial habits. With smart decisions, you can maintain a strong credit profile even after closing a card.

Ready to make an informed decision? Take control of your credit health today!