Maybe you’ve decided to switch credit cards, or perhaps you decided to cut your credit card ties altogether. Either way, you called your credit card company and had your account cancelled. If you no longer have a credit card account, does that mean you don’t have to pay whatever balance was left?

The short answer: no. You do still have to pay off the balance.

Why You Still Have to Pay Off Your Balance When You Close Your Account

Closing your credit card account doesn’t affect your obligations in any way when it comes to debt previously accumulated on your card. It just means the credit card company won’t be loaning you any further funds, and your credit card itself will be unusable.

In fact, you could still build up new interest payments and other fees that you will also be responsible for paying. So don’t let closing off a credit card lead to complacency about the payments. If you really want to be rid of the credit card for good, the only way to do that is to pay it off completely.

What if the Credit Card Company Chooses to Close the Account?

Somewhere in your credit card’s terms and conditions, you likely can find a mention that your credit card company can close your account, even without your consent. For example, they might do this if you make several late payments. The point is that they’re not forced to continue loaning you money. They can choose to close your credit card account.

You still had to pay down your balance if you closed your credit card, but what if they do? Yes. You’re still obligated to pay off the balance, even if they cancel their previous obligation to offer you financing. Why? Because you built that debt while you were being loaned money, and anything loaned to you that you spent, you must pay back.

If you’re the one choosing to close your credit card account, it’s usually a better idea to pay down the balance first, and then close the account. (Don’t pay it off and assume it will automatically be closed, or you might find yourself stuck with another annual fee or something.) However, if you’re worried that having the available credit will be too tempting, and you’ll build up more credit card debt, then go ahead and close them. Just remember that closing your account doesn’t get you off the hook when it comes to paying back what you currently owe.