Keep an unused credit card open if it has no annual fee, and close it only when it charges a fee you can't justify or tempts you to overspend. Closing a card removes its limit from your total available credit, which can push up your credit utilization, the share of your revolving limits you're using.
This guide covers what closing a card does to your FICO Score, what to do instead of closing, and how to close a card cleanly if you decide to.
What Closing a Card Does to Your Score
Two parts of the score are involved, and they don't hit at the same speed.
Utilization. Credit utilization falls under amounts owed, which makes up about 30% of a FICO Score. Say you have $10,000 in combined limits and carry $2,000 in balances, a 20% ratio. Close a card with a $5,000 limit and that same $2,000 is now 40% of your remaining $5,000. The effect starts as soon as the issuer reports the closure.
Account age. Length of credit history is about 15% of a FICO Score. A card closed in good standing usually stays on your credit reports for up to 10 years, so closing it doesn't cut your average account age right away. The cost comes later, when the closed account finally drops off and your oldest history goes with it. FICO notes that these weights may vary from one person to another.
When to Keep an Unused Card
- It has no annual fee. An open card that costs nothing can only help your utilization and your history. Put one small recurring charge on it, such as a streaming subscription, and set up autopay so the issuer doesn't close it for inactivity.
- It's your oldest account or carries your biggest limit. These are the cards whose loss would move your score the most.
- You're about to apply for a mortgage, auto loan or new card. Lenders look at your utilization and history at application, so leave your credit profile alone until the loan closes.
When to Close an Unused Card
- The annual fee isn't earning its keep. If you don't use the benefits that justify the fee, it's money out the door every year.
- The card tempts you to overspend. Protecting your budget can be worth a few score points.
- You have no way to avoid the fee. Ask for a downgrade first, below.
Try a Downgrade Before You Close
If you're paying an annual fee on a card you've stopped using, call the issuer and ask to switch it to a no-annual-fee version, often called a product change. The account stays open, so your account age and credit limit stay in place, and the fee stops. Issuers usually would rather keep you as a customer than lose the account, but offers vary, so ask what options your card has.
How to Close a Card
- Redeem your rewards first. Points and cash back are usually forfeited when the account closes.
- Pay off the balance and move any recurring charges to another card.
- Call the number on the back of the card and ask for the account to be closed. Ask for written confirmation that it's closed with a zero balance.
- Check your credit report a few months later to make sure the account shows as closed by the cardholder.
If you want to see how a drop in your score recovers over time, our guide to why your credit score dropped after opening a new card covers the same two factors from the other direction.
Updated October 17, 2026: closing guidance.
