How to Switch or Close a Credit Card Without Hurting Your Credit Score

Credit cards are an important part of your financial life. Over time, you might want to switch to a new card that offers better rewards, lower fees, or improved features. Or maybe you want to close a card you no longer use.

However, if done carelessly, these actions can impact your credit score. The good news is, you can switch or close your credit card safely — without damaging your credit profile.

Here’s how to do it the right way.

Why Closing or Switching a Credit Card Affects Your Credit Score

Before we look at the steps, it’s important to understand why your score might change.

1. Credit Utilization Ratio:
   This is the percentage of credit you use compared to your total credit limit.
   When you close a card, your total available credit decreases — making your utilization ratio higher, which can slightly lower your score.
2. Credit History Length:
   Older cards help build a longer credit history. Closing an old card may shorten your credit age and reduce your score.
3. Credit Mix:
   Having different types of credit (like loans and credit cards) helps your score. Reducing the number of credit cards might affect your mix slightly.

So, you shouldn’t rush to close a credit card — instead, plan it carefully.

Step-by-Step Guide to Switching or Closing a Credit Card Safely

Step 1: Choose the Right Time

Avoid closing or switching a card right before applying for a loan or mortgage. Even a small score change can affect your approval chances. Plan the switch at least 3–6 months before any major financial move.

Step 2: Pay Off the Entire Balance

Before closing or switching your credit card, clear all outstanding dues, including EMIs or pending charges. Request a no dues certificate from the bank once everything is settled.

Step 3: Redeem All Reward Points and Benefits

Once you close a card, any unused reward points, cashback, or benefits are usually lost. Redeem your points, vouchers, and airline miles before submitting your closure request.

Step 4: Contact Customer Support

Call or write to your card issuer to request closure or product switch. For a product switch, many banks allow you to move to a higher or lower version of the same card without closing your account.
For example, you can switch from a Platinum Credit Card to a Gold Credit Card with the same bank — keeping your credit history intact.

Step 5: Confirm the Closure in Writing

Once your request is processed, ask for a written confirmation or email from the bank stating that the card has been officially closed and all dues are cleared. Keep this as proof for your records.

Step 6: Check Your Credit Report

After 30 to 45 days, check your credit report to ensure that the card is shown as “Closed by the customer.” This ensures your record is updated correctly and prevents future disputes.

When You Should Switch Instead of Closing

• When the card has a long history and no annual fee.
• When you want better rewards or lower charges but want to keep your credit age intact.
• When you are eligible for an upgrade to a premium card from the same bank.

Switching instead of closing helps you retain your credit score benefits while still improving your credit card experience.

When It’s Okay to Close a Credit Card

• When the card has a high annual fee that isn’t worth it.
• When you no longer use it and want to simplify your finances.
• When the card issuer offers poor service or limited benefits.

Just make sure you follow the above steps and maintain at least one active card to keep your credit file active.

Final Thoughts

Closing or switching a credit card doesn’t have to hurt your credit score — it’s all about timing and planning.
Pay off all dues, redeem your rewards, and get written confirmation of closure. If you want better benefits, switching to another card from the same bank is often a smarter move than closing your account.

A well-managed credit portfolio shows lenders that you’re responsible — and that can help your credit score stay strong in the long run.