When you close a credit card and you still owe a balance, the debt you owe doesn't go away. The card agreement still applies, and you are still legally responsible for repayment. The following will also go on as normal: You'll continue receiving credit card statements in the mail.

Closing a credit card with a "positive" balance (meaning you still owe money) does not erase the debt. You are still legally obligated to pay the balance in full. In 2026, once the account is closed, you will continue to receive monthly statements, and interest will continue to accrue at your agreed-upon APR. The most significant impact is on your Credit Score. Closing the card immediately reduces your "Total Available Credit," which can cause your "Credit Utilization Ratio" to spike, potentially dropping your score by 20–50 points overnight. Furthermore, while the account stays on your credit report for 10 years if closed in good standing, you lose the ability to use the card for new purchases or to earn rewards points. In 2026, some banks may also "accelerate" the debt, requiring a higher minimum payment to ensure the balance is paid off within 5 years. It is almost always better to pay the balance to zero before closing the account.