How do you cancel a credit card the right way?

Question

ClearValue Editorial Team · Accepted Answer

Pay the balance to zero, redeem any remaining rewards, call to close the account, and get written confirmation before you cut the card. Understand that closing can temporarily lower your score by reducing available credit and shortening average account age. The steps take under 30 minutes but the decision deserves thought, because closing affects both credit utilization and length of credit history. Pay the balance to zero first — you can't close an account with a balance, and any remainder keeps accruing interest after closure. Redeem all rewards, since points, miles, and cash back tied to a closed account are typically forfeited. Call to close, note the representative's name and date (they may offer a retention deal you can accept or decline), and request written confirmation of a zero-balance closure. After 30-60 days, verify the account shows as 'closed by consumer' on your credit report. Often the better move than closing is downgrading to a no-annual-fee version of the same card, which keeps your account age and available credit intact.