Thinking about closing my credit card at first really overwhelmed me with all the conflicting advice out there. Lots of folks ask can I close a credit card but don’t realize how it affects their financial health. From my own experience and checking sources like Experian and FICO, I found you can definitely close credit accounts, but when and how you do it really matters for your credit score. Closing a card hits three big things: your credit utilization, how long your credit history is, and your credit mix – all super important for your financial standing. Let me share what I wish I knew before making this big financial decision.
Table of Content
- First, let’s cover the basics of closing credit cards
- How closing cards actually impacts your credit score
- The step-by-step process for closing your card
- Other options instead of closing your card
- Special Case: Store Credit Cards
- How to rebuild your credit after closing a card
- Common questions about closing credit cards
Understanding Credit Card Closure Basics
What Happens When You Close Accounts
So when you close a credit card, here’s what goes down – the card company marks your account as closed by customer on your credit report. That closed account stays on your report for up to 10 years if you paid your bills on time.
and it still counts toward your credit history length. But here’s the catch – your available credit drops right away, which can push up your credit utilization rate.
I found this out the hard way with my first store card – my utilization shot up from 15% to 35% in one day, and my credit score took a 20-point hit.
Here’s how the timing works – you’ll see the immediate effects in your next billing cycle, but the long-term stuff plays out over several months. FICO data shows that closing your oldest card usually drops your score by 10-30 points.
but if you handle your credit right, you can bounce back in 4-6 months. Your credit mix takes a hit too – say you only have two cards and close one, you’ve cut your active accounts in half, and lenders might think you have less experience managing credit.
When Closing Cards Makes Sense
Strategic elimination: Closing credit cards becomes financially prudent when facing high annual fees that outweigh benefits, or when dealing with problematic accounts like the Belk credit card payment Synchrony issues I experienced.
If you’re shelling out $95 every year for a card you never use, and the rewards aren’t worth it, closing that card could be your smartest move. Same goes if you can’t resist overspending – just getting that card out of your wallet can give you the financial discipline you need.
Here’s what I did to avoid fees – I recently closed a travel card that was costing me $150 a year even though I barely used it. Before pulling the trigger, I called the card company to see if I could switch to a no-fee card.
which kept my credit history intact while ditching the fee. This trick works great with big bank cards, but store cards like Synchrony’s Belk cards usually don’t give you many downgrade choices.
Wondering if you can close a credit card? Here’s how it affects your credit score.
Let’s talk about credit utilization first.
When you close a credit card, your available credit drops but your balances stay put. This automatically pushes up your credit utilization ratio. Experts say keep utilization under 30%, but I’ve found you get the best scores when you stay below 10%.
Say you have $10,000 total credit and $2,000 in balances – that’s 20% utilization. Close a card with $4,000 limit, and your utilization jumps to 33%. That could drop your score.
To avoid hurting your utilization, pay down balances before you close that credit card. I usually suggest getting balances under 10% of your leftover limits. Got multiple cards? Ask for higher limits on your other cards before closing one.
This keeps your total available credit up. Just make sure these credit checks don’t mess with any big loans you’re applying for soon, like a mortgage.
Now let’s consider your credit history length.
Closed accounts still help your average account age for up to 10 years if they’re in good standing. But lots of people make the mistake of closing their oldest cards, which instantly hurts their credit history length.
FICO says 15% of your score depends on credit history length. So keep those oldest cards open, even if you barely use them. I keep my first credit card active by putting a small recurring charge on it that pays itself automatically.
Before closing any credit card, check your credit report to see which accounts help your history length the most. I make a simple table to see this clearly:
| Card Name | Open Date | Account Age | Credit Limit |
|---|---|---|---|
| Chase Freedom | 06/2015 | 8 years | $8,500 |
| Belk Store Card | 11/2018 | 5 years | $2,000 |
| Capital One Quicksilver | 03/2020 | 3 years | $5,000 |
This helps you decide which cards you can close without wrecking your credit history.
Step-by-Step Card Closure Process
Pre-Closure Preparation Steps
First, check your balance and make sure it’s at zero before you close a credit card by paying off that last bill completely. I usually wait through one more billing cycle after paying to see if any extra charges or interest pop up.
Don’t forget to switch any automatic payments you’ve got set up, update your subscriptions like Netflix or Spotify, and use up all your leftover rewards points. When I closed my Belk credit card, I cashed in all my points for stuff before I even called Synchrony to shut down the account.
If you’re worried about how closing a credit card might affect your credit utilization, try asking for higher limits on your other cards first. I managed to get two of my cards raised by $3,000 total before closing another card that had a $2,500 limit, so my total available credit stayed about the same. Just space out these requests carefully because too many credit checks in a short time can ding your score, so try to wait 3-6 months between them if you can.
Execution and Documentation
To officially close a credit card, just contact your card company through their secure message system or give them a call. I like calling on recorded lines better, that way you have proof of what was said.
When I called Synchrony to close my Belk card, the rep tried to keep me with some offers, but I stuck with my decision. Always ask for written confirmation that you closed the account, usually they’ll email or mail it to you.
and hang onto that for your records. Check back in about 30-45 days to make sure your credit reports show the account as closed by consumer.
After you close a credit card, keep an eye on your credit reports through AnnualCreditReport.com to see everything’s reporting right. I set reminders on my calendar to check my reports again at 30 days, 90 days, and 6 months after closing.
If you spot any mistakes, dispute them right away with the credit bureaus. If your score takes a big hit, just focus on good credit habits like keeping your balances low on other cards and paying everything on time – usually your score bounces back in a few months.
Alternative Strategies to Card Closure
Product Change Options
Account preservation method: You don’t have to close your credit card completely. Many card companies let you switch to a no-fee version instead. This way you keep your credit history and spending limit intact.
I had this card with a $95 yearly fee I wanted to ditch. So I just asked for a product change to a free card from the same bank. That saved my 7-year account history from disappearing.
This trick works great with big names like Chase, Amex, and Capital One. Store credit cards though? They usually don’t give you many choices.
Strategic downgrading: Just call up the retention department at your card company. Ask them what no-fee cards they have available for you to switch to. From my experience, calling works way better than online chat.
The phone reps usually have more power to help you out, plus they really want to keep you as a customer. Make sure you’re clear about what you want – no account closure, just no more fees.
Watch out though – some companies might run a hard credit check when you switch cards. Always ask about this first before making any changes.
Minimal Usage Approach
Account activation strategy: If you want to keep your card open but worry they’ll close it from lack of use, just use it a tiny bit now and then. What I do is put one small monthly charge on each card – like a Netflix subscription.
Then I set up auto-pay from my bank account so it pays itself. This little bit of activity keeps the card companies happy without you having to worry about it much. Just check your cards every few months to make sure there’s no funny business with charges and your auto-pay is working right.
Security optimization: For those cards you barely use but want to keep open, step up your security game. I turn on alerts for every purchase, lock my cards in the app when I’m not using them, and keep the actual cards somewhere safe.
Lots of card companies now give you virtual card numbers for online shopping, which really cuts down on fraud worries. This way you keep your credit history and available credit building up, without stressing about security on accounts you don’t use much.
Special Case: Store Credit Cards
Here are some things to think about with store cards.
When you evaluate retail cards like Belk, Target, or Amazon cards, you’ll notice they usually give you lower credit limits and charge higher interest rates compared to regular credit cards.
After reading numerous Spun credit card reviews and analyzing my own Belk card experience, I’ve found these accounts typically have less impact when closed compared to major bank cards, provided they aren’t your oldest accounts.
Since they’re so specialized, they don’t add much variety to your credit mix in the scoring models.
The main effect of closing a store card is on your relationship with that particular store. When I closed my Belk card, I lost their special financing and discounts, but my credit didn’t take a big hit because I kept other cards with higher limits.
Before you close a store card, ask yourself if you’ll keep shopping there – if not, losing the benefits might be worth it to simplify your finances.
Now about Synchrony Bank specifically.
Synchrony Bank handles lots of store cards like Belk, PayPal, and Lowe’s, and they have their own way of doing things. To close these cards, you usually have to talk to a person instead of doing it online yourself.
During my Belk credit card payment Synchrony closure experience, I found their representatives well-trained in retention attempts but ultimately cooperative with closure requests.
Make sure you keep good records of your conversation, since Synchrony works with many different stores and things can get mixed up.
After you close Synchrony accounts, keep an eye on your credit reports for those specific accounts. I’ve found they often take more time to update compared to big bank cards.
Synchrony can be pretty pushy about reopening closed accounts if you apply for new credit with them later, so expect to get prescreened offers. If you don’t want more Synchrony accounts, you can opt out of prescreened offers at OptOutPrescreen.com.
| Situation | Recommended Action | Potential Score Impact |
|---|---|---|
| High annual fee card | Product change or close | 10-20 points temporary |
| Oldest credit card | Keep open with minimal use | 30 points if closed |
| Store card with low limit | Can close if not oldest | 5-15 points temporary |
| Multiple cards from same issuer | Consolidate or keep separate | Varies by utilization change |
So you’re wondering if you can close a credit card and how to rebuild your credit after that.
Here are some credit recovery strategies that really work.
If your credit score took a hit after closing cards, don’t worry – there are proven ways to build it back up. I stick to two main strategies: keep your credit utilization under 10% on the cards you still have.
and mix up your credit with different types of accounts. When my Belk card closure cut my available credit, I focused on paying down balances on my other cards – my score bounced back in just four months.
Want faster results? Try a credit-builder loan or get added as an authorized user on a family member’s good account.
Keep an eye on your credit score weekly – you can use free services from your card companies or Credit Karma. I make simple spreadsheets to track trends and see what moves my score up or down.
When your score goes up, figure out what you did right and keep doing it. If your score keeps dropping for more than six months, check your credit reports for mistakes or talk to a non-profit credit counselor for help.
For the long haul, here’s how to manage your credit.
Build habits that keep your credit healthy without you having to watch it all the time. I review all my credit cards quarterly, set calendar reminders for annual fee dates, and use credit monitoring alerts for significant changes.
This way I can decide which cards to keep, close, or change before there’s any trouble. Remember that credit cards are financial tools – they should serve your needs, not create unnecessary complexity or costs.
As your money situation changes, take another look at your credit cards every so often. I check my cards once a year to see if they match my spending and money goals.
This shows me which cards I don’t use much – maybe I should change or close them – while making sure I get the most rewards from cards I actually use. Thinking it through stops me from making emotional decisions about closing cards and keeps my credit healthy for years.
Closing credit cards requires careful consideration of both immediate and long-term credit impacts. Sure, you can close cards you don’t want, but picking the right time or asking for a product change might be smarter for your finances.
Everyone’s credit situation is different – what helps one person might not work for you. Check your credit often, learn how scoring works, and make choices that fit your big money goals – don’t just react to being annoyed with certain cards.
Did your credit score change after closing a card? Tell us your story below, or check out our guide on credit utilization to handle your available credit better.
FAQ About can i close a credit card
Wondering if closing a credit card hurts your credit score?
Yes, closing credit cards can hurt your score primarily by increasing your credit utilization ratio and potentially shortening your credit history length. How much it affects you really depends on your credit situation.
If it’s your oldest card or gives you lots of available credit, the hit could be bigger. But don’t worry too much – this effect usually only lasts about 4 to 6 months, especially if you keep your other card balances low.
How long do closed credit cards stick around on your credit report?
Cards you closed in good standing stay on your report for up to 10 years. They still help your credit history during that whole time. If you had late payments or collections on the card.
those negative marks typically hang around for 7 years from when you first fell behind. This longer reporting period helps soften the blow when you close older accounts, since they still count toward your average account age.
Should I close store credit cards first?
Usually, yeah. Store cards from places like Belk or Target typically have lower limits and fewer perks than regular cards, so they’re often the best ones to close.
But check your credit report first – make sure that store card isn’t your oldest account or giving you a big chunk of your available credit. I usually tell people to close store cards before bank cards, unless that store card plays a special role in your credit history.
What’s the better move – closing cards or keeping them open?
Keeping cards open is generally better for your score, as long as they don’t hit you with high fees or make you want to overspend. The only exception is when the annual fees cost more than the benefits you get from keeping the card.
If you can, try switching to a no-fee version of the card instead of closing it completely. Personally, I keep a few no-fee cards with small regular charges. This way I maintain my credit history and available credit without any cost or hassle.
