What to Check Before Closing a Credit Card

Closing a credit card is not automatically good or bad. The Consumer Financial Protection Bureau notes that closing an account can increase credit utilization by reducing total available credit, which may lower a credit score. The effect depends on the rest of your credit profile.

Review the account before acting

• Protect or redeem rewards that could expire.
• Move subscriptions and recurring bills.
• Download statements and confirm there are no pending refunds or disputes.
• Ask whether a lower-fee product change is available and what features would change.

Compare cost with practical value

Count only credits and benefits you genuinely use. A card can be worth keeping when its ongoing value exceeds its fee, but paying a fee solely from fear of a score change may not fit your goals.

Use Keep, Downgrade or Cancel, the Portfolio Health Score, and the Annual Fee Calculator before calling the issuer.