Will closing a credit card hurt your score? What you should know before closing your card.
April 5, 2026
If you’ve ever considered closing a credit card, you’re definitely not alone. Maybe you’re paying an annual fee for perks you barely use, or perhaps you’re looking for ways to simplify your finances. Whatever the reason, it’s natural to wonder whether closing that account will hurt your credit score. The honest answer? It can, but not always in the way most people expect.
The impact usually comes down to a couple of key factors, like how much of your available credit you’re using and how long your accounts have been open. Closing a card isn’t automatically a bad move, but depending on your situation, it can cause a short-term dip in your score.
In this guide, we’ll break down what actually happens behind the scenes when you close a credit card, so you know exactly what to expect. We also share practical tips to help you weigh the pros and cons, along with a few smart alternatives to consider before you move forward.
If you decide closing your account is the right move, you can compare the top credit cards here to find a better fit for your current goals.
Will closing a credit card hurt your credit score? In most cases, yes — at least a little. According to credit expert John Ulzheimer, who is formerly of FICO and Equifax, the reason closing a credit card can hurt your score is because you lose the value of any unused credit limit in the credit utilization ratio metrics.
So, if you have a card that has a large amount of unused credit limit and you close the card, your score can go down. It’s not a guarantee that it will go down, but it could.
The impact of closing a credit card will likely be more significant in certain situations, such as if you owe high balances across multiple cards already. If you close a card that has an unused limit at that point, your credit score will likely drop.
That said, Ulzheimer points to a stubborn myth that says closing an account can lower your score because you lose the value of the age of the account.
"That’s untrue," said Ulzheimer. "As long as the card is still on your credit reports, you continue to get the value of the age of the card. And, even closed cards continue to age so you continue to get the value of the aging of the card."
According to Experian, closed credit accounts can stay on your credit reports for up to 10 years.
Even though closing a credit card can ding your score a bit, there are plenty of situations where it’s still the right move. In other words, the decision shouldn't be just about your credit score — it’s about what makes the most sense for your overall financial life.
Annual fees are one of the most common reasons to close a credit card. If you’re paying $250, $595 or more each year and not getting enough value from rewards or perks to justify the cost, keeping the card open may not make sense. In that case, a small, temporary dip in your credit score could be a fair trade-off for saving money over time.
Another valid reason to walk away is a bad experience with the card issuer. Whether it’s consistently poor customer service, billing issues or concerns about security, dealing with ongoing frustration isn’t worth it for most people. If you don’t trust the company behind your card, closing the account can bring some well-deserved peace of mind.
If having access to a certain credit line leads to overspending or financial stress, closing the card can be a smart move. Prioritizing better habits and less stress is often more important than protecting your credit.
"If you just do not have the self-control to not get into too much credit card debt, then closing a card would make more financial sense," said Ulzheimer.
At the end of the day, it’s all about weighing the pros and cons. If closing a card helps you save money, reduce stress or stay in control of your spending, short-term damage to your credit that occurs could be well worth it.
A quick way to think the decision through is to compare the type of card you have and how it fits into your overall credit profile. Some cards are far more valuable to keep open than others — especially when it comes to protecting your credit.
Here’s a simple breakdown to help you decide:
Factor | Better to Keep | More Okay to Close |
Card Age | Your oldest card (has already been on your credit reports for a while) | A newer card with little history |
Credit Limit | A high-limit card (keeps your utilization low) | A low-limit card that doesn’t impact your utilization as much |
Annual Fee | A no-annual-fee card (costs nothing to keep open) | A high annual fee card that isn’t delivering value |
Beyond the card itself, timing for an account closure matters quite a bit.
If you’re planning to apply for a mortgage, auto loan or any other major financing in the next six to 12 months, it’s usually best to hold off on closing any credit cards. Even a small dip in your score could impact the rates or terms you qualify for, and lenders tend to prefer stability in your credit profile during that time. If you’re just starting out or trying to improve your score, understanding how you can build a credit history is essential before making any changes that could shorten your account age.
If you don’t have any major borrowing plans coming up, on the other hand, you may have more flexibility to close a card and let your score recover naturally.
In the short-term, you'll also want to make sure you use up any rewards that are tied to a specific card or account. If you close your card completely without redeeming your rewards balance, you could wind up forfeiting your credit card points.
If you're still unsure about closing a specific credit card you have, there are a few other options to consider. In many cases, you can avoid a hit to your credit score while still addressing the reason you wanted to close the account in the first place.
One of the easiest ways to change up your credit card lineup without closing an account is asking for something called a "product change." This means downgrading your current card to a no-annual-fee version within the same family of cards.
If you have the Chase Sapphire Reserve® but can't seem to get enough value out of the annual fee, for example, you could inquire with Chase about switching the account to the Chase Freedom Unlimited® or Chase Freedom Flex®.
This move lets you keep your account open — and preserve your credit history and limit — while switching products to one with no annual fee. Just keep in mind that you'll typically lose perks, rewards or both with this strategy, as you're switching to a new card with different rewards rates and benefits.
If your goal is to stop using the card, you don’t necessarily have to close it. Instead, you can stick it in a drawer (literally or figuratively) and only use it occasionally.
A good rule of thumb is to make a small purchase every six months — like a one-time bill or a tank of gas — and then pay it off right away. This keeps the account active and helps you maintain your available credit and account age without regular use of the card.
Chief Lending Officer David Morgan of Lake Trust Credit Union says another good strategy is using the card for a small recurring charge that is set to be paid off automatically. Examples include subscription services, utility bills or a monthly phone bill.
This will keep the account active without encouraging overspending, he says.
If you’re set on closing a card, you can always request a credit limit increase on your other cards first. That way, you can help offset the loss of available credit and minimize the impact on your credit utilization ratio.
Many issuers let you request an increase online, and in some cases, it won’t even require a hard credit check. If approved, this strategy can soften the blow to your score and prevent the account closure from making a bigger impact. If you are moving debt to a new card to lower your utilization, make sure to check if balance transfer fees are worth it before you commit.
Closing a credit card isn’t necessarily a mistake, but it’s not a decision to make lightly, either. In most cases, you can expect at least a small, temporary dip in your credit score, mainly due to changes in your credit utilization and overall profile. Fortunately, the impact is usually short-lived if you continue to use credit responsibly. Part of that responsibility is knowing how much your debt actually costs you; if you're still facing APR confusion, here is what credit card companies don't explain about how interest is calculated.
What matters more is your long-term financial health. If a card is costing you money in annual fees, leading you into more debt or preventing you from reaching financial goals, closing it could absolutely be the right move.
Closing a credit card with a $0 balance may or may not cause damage to your credit score. It depends on the balances you have across other accounts and how they compare to your total available credit limits.
Credit expert John Ulzheimer also says the following: "If you have low balances and a lot of unused credit limits elsewhere, then closing a card could be meaningless."
There's no exact number your credit score will drop after you close a credit card account. However, many consumers have seen their credit scores temporarily drop five to 15 points after an account closure.
Most credit score dips caused by closing an account are only temporary. If you pay your bills on time, keep credit utilization low and use your accounts responsibly, your credit score should rebound over time.
Holly Johnson is a money and insurance expert who has covered personal finance, credit cards and insurance for over a decade. She is passionate about explaining the ins and outs of financial products to consumers, and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She lives in Indiana with her husband and children.
