Short answer: the CFPB says you should be able to close a card by calling the card company and following up in writing. Closing does not erase what you owe: you keep paying on schedule, and the issuer can still charge interest on the balance. Before you close, move any bills that charge the card, ask for any credit balance back, and check the timing of an annual fee. Closing a card can raise your credit utilization and lower your score. This is general information, not legal or financial advice.
What the CFPB says to do
The CFPB says: “In general, you should be able to close your account by calling the credit card company and following up with a written notice.” It adds that your cardholder agreement “may give you any other details on how to close your account”, and that you can ask the card company for a copy if it is not on its website (CFPB, last reviewed January 22, 2024, read October 30, 2026; this page may be out of date). See how to find your credit card agreement.
Steps before you call
- Write down which bills and subscriptions charge this card, and give them a new way to pay. For payments you set up with a lender, see how to stop automatic loan payments.
- Turn off any automatic payment you send to this card from your bank only after the balance is paid, so you do not miss a payment.
- Use or ask about any rewards on the account; ask the issuer what happens to them when the account closes.
- Check for a credit balance and ask for it back (see below).
- Check when the next annual fee will be billed (see below).
You still owe the balance, and interest
The CFPB says that if you still have a balance when you close, “you are required to pay off any balance on schedule”, and “The card company is allowed to charge interest on the amount you still owe” (CFPB). On another page it says: “When you close your account, you are still obligated to pay at least the minimum amount until the full balance is paid off” (CFPB, last reviewed September 23, 2024; this page may be out of date). Regulation Z’s limits on raising the rate on a credit card balance continue to apply after the account is closed (12 CFR 1026.55(d)(1), eCFR, text up to date as of October 28, 2026, read October 30, 2026). Interest can also show up on the statement after you pay in full; see trailing interest on a credit card.
Getting a credit balance back
If you paid more than you owed, or a return was credited after you paid, the account can have a credit balance. For a credit balance “in excess of $1”, the creditor must “Refund any part of the remaining credit balance within seven business days from receipt of a written request from the consumer”, and must make a good faith effort to refund any part left on the account “for more than six months” (12 CFR 1026.11(a)(2) and (a)(3), eCFR, text up to date as of October 28, 2026). Ask in writing before or when you close, so the money is not left behind. See how to get a credit card credit balance back.
Annual fee timing
If the card charges a fee to renew, Regulation Z says the issuer must send written notice at least 30 days or one billing cycle, whichever is less, before the statement that first bills the fee, and the notice must say “How and when the cardholder may terminate credit availability under the account to avoid paying the renewal fee” (12 CFR 1026.9(e)(1)(ii), eCFR). See annual fee renewal notices for what the notice shows.
What closing can do to your credit
The CFPB’s answer is: “It depends on your situation.” It warns: “don’t assume it will improve your credit score”. It also says keeping an old account with a positive payment history open “may help maintain a higher credit score” (CFPB, page last modified January 14, 2025, read October 30, 2026; this page may be out of date). It lists cases where closing might be a good decision:
- The card has annual fees or poor terms that outweigh the benefits.
- Closing it helps you avoid building up debt you cannot pay off.
- You are not planning to apply for credit in the near future.
It also says part of your score is based on the credit you use divided by the total you have, your “credit utilization ratio”, and that “Closing an existing card can increase your credit utilization ratio and lower your score.” The change “may be temporary or minor”, but the full impact depends on the rest of your credit profile (CFPB).
A utilization example, only for the math
This example is only for the math. Every figure is an example figure. You have two cards: one with a $5,000.00 limit and a $1,200.00 balance, and one with a $3,000.00 limit and no balance.
| Total limits | Balance | Utilization | |
|---|---|---|---|
| Both cards open | $8,000.00 | $1,200.00 | $1,200.00 / $8,000.00 = 15% |
| After closing the $3,000.00 card | $5,000.00 | $1,200.00 | $1,200.00 / $5,000.00 = 24% |
Closing the unused card does not change what you owe, but the share of your limits in use goes from 15% to 24%. Paying the balance down before you close lowers both figures. Applying for new credit soon? See does applying for a personal loan hurt your credit.
If you keep the card open instead
The CFPB says that if you keep an unused account open, watch your statements for identity theft and for unexpected fees or charges (CFPB). Regulation Z says a creditor may not close an account before its expiration date “solely because the consumer does not incur a finance charge”, but it may close an account that has had no new credit and no balance “for three or more consecutive months” (12 CFR 1026.11(b), eCFR). If the issuer closes your card or cuts your limit, see credit card closed or limit cut.
Joint accounts and authorized users
For a joint account, the CFPB says each account holder “is responsible for the full amount of the balance”, and that if you close the account, each joint holder is responsible for the entire balance at that time (CFPB). An authorized user is different from a joint owner; see authorized users and your credit.
Questions to ask when you call
- What is my balance today, and will interest still post after I close?
- Is there a credit balance, and can you send it to me now? Where do I send the written request?
- When is the next annual fee billed, and will it be reversed if I close now?
- What happens to my rewards when the account closes?
- Where should I send written confirmation that I asked to close the account?
Checklist
- Move bills and subscriptions off the card first.
- Call, then follow up in writing, and keep a copy.
- Keep paying at least the minimum until the balance is zero.
- Ask in writing for any credit balance over $1.
- Check your next statements and your credit report to confirm the account shows as closed.
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Sources
- CFPB: I want to close my credit card account. What should I do? (last reviewed January 22, 2024; page last modified January 22, 2025)
- CFPB: I let the card issuer know I was closing my account. They are still charging me interest. Can they do that? (last reviewed September 23, 2024)
- CFPB: Does it hurt my credit to close a credit card? (page last modified January 14, 2025)
- CFPB: Am I responsible for charges on a joint credit card account if I didn't make them? (last reviewed January 22, 2024)
- eCFR: 12 CFR 1026.11, Treatment of credit balances; account termination (Regulation Z), current text up to date as of October 28, 2026
- eCFR: 12 CFR 1026.9, Subsequent disclosure requirements (Regulation Z), current text up to date as of October 28, 2026
- eCFR: 12 CFR 1026.55, Limitations on increasing annual percentage rates, fees, and charges (Regulation Z), current text up to date as of October 28, 2026
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.