How to Close a Credit Card Safely: Step-by-Step

1. Pay Off Your Full Balance
   Don’t close a card with a balance—interest and fees can pile up. Bring it to $0 before you proceed.
2. Redeem Your Rewards
   Cash in any points or cash back—you’ll lose them once the account is closed.
3. Update or Cancel Auto-Payments
   Move recurring payments and subscriptions to another card or bank account.
4. Contact Your Card Issuer
   Call the number on the back of your card or use secure messaging to request closure. Ask for written confirmation.
5. Destroy the Physical Card
   After your account is closed, cut up the card (or shred it) to prevent accidental use or theft.
6. Monitor Your Credit Report
   Check your report after 30–60 days to make sure the card is reported as “closed at your request” with a $0 balance.
7. Watch Your Credit Score
   Some dip is normal—your score should rebound as you keep using your other cards responsibly.

What to Expect When Closing a Credit Card

• Your credit score may dip a little: This is normal, especially if you close your oldest or highest-limit card.
• Rewards and points are lost if not redeemed: Make sure to cash them out first!
• The closed account’s positive history stays on your report: Closed cards still help your score for years to come.
• Issuers may offer to keep you: You might be offered a lower rate or waived fee if you call to close—don’t hesitate to ask.
• Financial life gets simpler: Fewer cards can mean less temptation, lower fraud risk, and easier budgeting.

Pro Tips & Common Mistakes to Avoid

• Don’t close all cards at once: Keep at least one active card for emergencies and to maintain credit history.
• Avoid closing cards with high limits unless necessary: Keeping them helps your credit utilization ratio.
• Check for pending or small charges before closing: Unpaid amounts can trigger fees even after you think you’re done.
• Think twice before closing your oldest card: Length of history helps your score.
• Request confirmation in writing: Make sure your account is marked “closed at your request” and shows a $0 balance.

A Typical Card Closure Scenario

Closing a credit card can be a smart move—if you follow a few key steps. Here’s how Carla managed it without surprises:

Carla’s story: After paying off a card she rarely used, Carla decided to simplify her finances by closing it. First, she checked for any remaining balance or pending charges, then redeemed her cash-back rewards. She also made sure to update her Netflix and gym membership with her other card.

When she called her bank, they offered to waive her annual fee if she’d keep the account open. Carla considered the offer, but decided to stick with her plan. She asked for written confirmation and double-checked her credit report a month later to make sure the card was marked “closed at customer’s request.”

The result? Carla’s credit score dipped slightly at first, but bounced back with regular on-time payments. She felt good knowing she’d taken control and kept her credit strong.

Frequently Asked Questions

Need More Support?

Not sure if you should close a card, or worried about your credit score? Our nonprofit counselors can help you weigh your options and make a confident choice—no pressure, just honest advice.