Does Closing a Credit Card Hurt Your Credit Score?

Your credit score plays a big role in getting approved for any type of financing, so it’s important to know what can impact it. One move that might seem simple — closing a credit card — could affect your score more than you think. 

Key takeaways: 

• Closing a credit card could reduce your available credit and shorten your credit history.
• It might be the right move if the card has high fees, high interest rates, or encourages overspending.
• If you decide to cancel, be sure to pay off the balance, use any rewards, and request a confirmation email for your records. 

How does closing a credit card affect your credit score? 

Less available credit 

Your credit utilization ratio refers to how much of your available credit you use, and it includes the total of all your credit accounts. 

Most experts agree it's best to keep your credit utilization at or below 30%. If you close one or more of your credit accounts, you’ll have less credit, which could lower your utilization ratio and hurt your overall credit score. 

A lower average account age 

The older your credit history, the better. 

If you close a recent account, your credit might not be affected at all. But closing your oldest account could reduce the total length of your credit history, causing your score to take a hit. 

May impact credit mix 

Credit mix refers to how many different types of credit accounts you have, which makes up 10% of your FICO credit score. If you only have one credit card, closing the account could reduce your credit mix and lower your score. 

When closing a credit card makes sense 

Even though canceling a credit card can hurt your credit score, it may make sense to do so in the following situations: 

• High annual fees. Annual credit card fees can range from $50 to $1,000, depending on the provider. If the high annual fee doesn’t justify keeping the card, closing the account may be a good option.
• Overspending. According to Bankrate’s 2025 Credit Card Debt Report, nearly half of Americans have credit card debt, and it’s often due to overspending. Credit card debt has a worse impact on your credit score than closing an account, so canceling a card or two might be worth it.
• High interest rates. Credit cards with high interest rates make it easier to carry a balance. This makes it tough to save more than you spend, and it might make sense to cancel the card altogether.
• Lack of rewards. Credit card companies often run special reward promotions when you sign up for a new card. If you want to capitalize on rewards but limit the number of credit cards, consider canceling an old card when you sign up for a new one. 

When keeping a credit card account open makes sense 

• It’s your oldest account. Deleting your oldest credit account may negatively impact your credit score. Even if you don’t plan to use it, it’s a good idea to keep your oldest credit card account open.
• It’s your only form of credit. Having at least one credit account can help increase your credit score. Without any form of credit, you won’t be able to increase your score for future loans.
• You always pay your balance in full. If you pay off your balance every month, there’s no reason to close the account. Continue making on-time payments to boost your credit score. 

Alternatives to closing your credit card

If you're keeping your card open to help your credit, there are easy ways to work around the issues that made you want to cancel it. 

• Don’t like the annual fee? Call your issuer — they might lower or waive it.
• Worried about overspending? Take the card out of your wallet and stash it away.
• Not using it much? Just make a small purchase each month to keep it active.
• Request a credit limit increase to boost your credit utilization ratio. 

How to close a credit card safely 

If you’ve decided that canceling a credit card is better than keeping it, here’s how to safely close your account. 

1. Pay off the balance. Credit card companies won’t allow you to close an account until you settle what you owe.
2. Use your rewards. Don’t let your points or cash back go to waste! Redeem any rewards before losing access. If you’re not ready to use them, ask if you can transfer them to another account.
3. Update any recurring payments to a new account. That way, you’ll avoid late payment fees that can hurt your credit score.
4. Close the account. When you’re ready, contact the credit card provider to close the account. You can do this online, through your credit card app, or over the phone. Once the account is closed, ask for a confirmation email for your records.
5. Destroy the card. A few good options are to put the cards through a paper shredder or to cut them with scissors.
6. Check your credit report. Whenever you close an account, review your credit report to see if you need to take any measures to rebuild your credit. 

➢RELATED: How to Build Credit Without a Credit Card

FAQs about closing credit card accounts 

How long does a closed credit card stay on my credit report? 

Credit card accounts closed in good standing can stay on your report for up to 10 years. But if you missed payments and the account damaged your score, it will fall off sooner — typically after seven years. 

Can I reopen a closed credit card? 

It depends on how and why it was closed. If you were the one who closed it, you may be able to reopen within a certain timeframe — usually within 30 days, although this window varies by issuer. If the credit card company closed it because of late or missed payments, you won’t be able to reopen it. 

Is it better to close a credit card or leave it open with a zero balance? 

If closing a credit card will reduce your available credit or credit history too much, it’s better to leave it open with a zero balance. The exception is when the card has a high annual fee, as you’ll need to pay that fee even if you don’t use it.