Will Closing My Credit Card Hurt My Credit Score?

Updated October 2025 

As useful as credit cards can be, it can also be easy to rack up a lot of debt if you’re not careful. Once you’ve paid off that debt, closing a credit card can feel liberating, but you may still wonder, “How does closing a credit card impact your credit score?” Whether you’re hoping to opt out of an annual fee or reduce your open lines of credit, here’s what to know before taking the next step.

Does closing a credit card hurt my credit score?

Closing a credit card may, at least temporarily, lower your credit score. 

Your credit score is calculated by examining multiple factors, including payment history, how much you owe, the length of your credit history, types of credit you have, and most recent credit activity. This is all done on a weighted scale and each factor affects your score in a different way.

Your recent activity is weighted as 10% of your credit score, and large changes (like closing a card) can signal risky behavior to lenders. 

Bottom line: Closing or cancelling credit cards will shift how your credit score is calculated so understanding the impact on your credit score is important.

What happens if you close a credit card?

There are several ways your credit score can be impacted by closing a credit card. Most commonly, it increases the percentage of credit used versus available credit.

For example, suppose you start with three cards with a $1,000 limit each and close two because you’ve only been using $1,000 in credit. Where you were utilizing your credit at 33%, that number now jumps to 100%. This percentage is called your credit utilization ratio.

Ultimately, creditors and lenders like to see a low credit utilization ratio because it theoretically shows you are not overusing or financially dependent on credit. Many financial advisors recommend leaving unused lines of credit open to prevent a significant change in this ratio. More available and unused credit is good for your credit score.

Closing a credit card may also change the length of your payment history. The longer your credit history, the better it is for your score, so closing a card that’s been open for a long time will significantly impact your credit history. If a card is newer, closing it will have less impact on your credit history and therefore your credit score.

Is it bad to close a credit card?

Closing or cancelling a credit card isn’t necessarily “good” or “bad.” It all depends on your goals. While it may impact your credit score, it may hold short-term and long-term benefits, such as reducing annual card fees or encouraging you to spend less and stay on track financially. 

How to close a credit card safely

If you decide that closing a credit card is right for you, there are a few steps to ensure your credit card is closed safely. 

First, pay off any remaining balance on the card, update any recurring payments using that card, and see if you have any unused rewards.

Next, either call the card issuer (listed on the back of your card) or cancel online. Finally, cut up the physical card to avoid confusion and keep your identity protected.

It’s also considered best practice to follow up with a written cancellation request so there’s a paper trail involved.

Now it’s time to check your credit score. You’ll want to know how your score has been affected for future financial decisions and to ensure the line of credit no longer appears. You can get a free credit report through services like Experian or Credit Karma. Doing a monthly credit check can help you learn how certain behaviors (closing a credit card) can affect your credit score and help you prepare for larger purchases (home, car) and avoid surprises in the future. 

Note: You don’t have to pay off your credit card balance before closing a card. You can close the card and continue paying off your debt monthly or in larger chunks. However, interest will continue on your credit card balance even though the card is closed. So make a plan to pay off your credit card as soon as possible.

How to pay off a closed credit card

After you close your credit card, you’ll want to focus on getting rid of any and all outstanding balances. Here are a few ways to pay down your debt and keep your credit score healthy. 

• Use a method called debt snowball

  This essentially means paying off one card at a time. Start with the highest interest credit card so you can stop accruing interest, faster. Then, move onto the next card and the next until you are debt-free or carrying the level of debt comfortable to you. Throughout this process, keep up on your minimum payments for all cards to avoid fees. Paying your credit cards off in this way, allows you to focus on one goal at a time and see progress more easily. Check out our debt snowball calculator to help you tackle your credit card balance.

• Get a personal loan

  A personal loan can be obtained from your banking partner for a low interest rate. Consolidate your credit card balances into one personal loan so you have a lower interest rate and only one payment to manage. 

• Transfer your balance to a zero interest card
  

  Balance transfer cards typically carry zero interest and charge a fee for transferring your balance from other accounts. This allows you to focus on one payment for your debt and avoid the costly interest from your credit cards. Many times, zero interest cards begin charging interest after a year or 18-months so make sure you have a plan to pay off your debt within this time period. 

Pay off your debt securely

While there are many viable options for paying off your credit card debt, there are also several scams to watch out for. If a company or person asks you for money or fees before settling your debt or claims that you are being entered into a “new government program” that will help bail you out of personal debt, there’s a good chance it’s fraudulent. Remember: if it seems too good to be true, it probably is.

Take Your Next Steps with Landmark National Bank

No matter where you’re at in your credit, Landmark National Bank is here to help you along in your financial journey. If you’re ready to break up with your current credit card to find something that perfectly fits your needs, take a look at our personal Visa credit card options. Or, with a variety of personal and business banking options, we’ll help you get where you want to go. Find a Kansas location near you today!