How to Cancel a Credit Card Without Hurting Your Credit

Thinking about closing a credit card account? Whether it’s due to fees, temptation, or simply lack of use, canceling a card is easy—but it can affect your credit score if done the wrong way. This guide explains how to cancel a credit card step-by-step while protecting your credit health.

🔍 Quick Summary

TL;DR: Pay off your balance, redeem rewards, and check your credit utilization. Then call the issuer or cancel online. Avoid closing your oldest card unless absolutely necessary.

📋 Step-by-Step: How to Cancel a Credit Card

Pay off the full balance. Don’t try to cancel if you still owe money on the card.
Redeem any unused rewards. Once you close the card, those points or cashback might vanish.
Check your credit utilization. If this card has a high limit, closing it might increase your overall usage rate (which can hurt your credit score).
Consider the age of the account. Closing your oldest card could shorten your credit history and lower your score.
Contact the issuer. Call the customer service number on the back of the card or log in to your account online to cancel.
Get written confirmation. Ask for an email or letter that confirms the account is officially closed with a $0 balance.

💳 Can Cancelling a Credit Card Hurt My Credit?

Yes, but not always. Here’s when it might:

If you close a card with a high credit limit → Your utilization ratio may spike.
If it’s your oldest account → Your average age of credit will drop.
If you have only 1–2 cards total → You’ll reduce your available credit lines.

Tip: Keep older cards open and use them occasionally to maintain credit history—even if they’re rarely used.

🛑 When You Should NOT Cancel a Card

If it’s your only credit card (keep one open for credit mix)
If you’re about to apply for a mortgage, car loan, or refinance
If you haven’t used the rewards or cash back yet

✅ Alternatives to Cancelling

Ask for a downgrade. Switch to a no-fee version of the card.
Lock the card. Temporarily disable it using your app if you want a break.
Use it for small recurring bills. Keep it active without overspending.

❓ FAQs

Can I cancel a credit card with a balance?

No, you must pay the full balance first. The issuer won’t close the card until you do.

Will cancelling a credit card stop annual fees?

Yes, but timing matters. Cancel before the fee posts or ask for a refund if it just hit.

Can I reopen a credit card after canceling?

It depends on the issuer. Some allow it within 30–90 days, but you may need to reapply.