Does Closing a Credit Card Affect Credit Score?

Does closing a credit card affect credit score?

Short answer: yes, it can. Not always immediately, but the impact is real.

And it often surprises people.

Why closing a credit card changes things

A credit score is built on patterns.

Not just spending. History.

When a credit card is closed, two things shift at once:

• Available credit reduces
• Credit history changes

Those shifts are what affect the score.

Credit limit matters more than it seems

Every credit card adds to total available credit.

Close one card, and the total limit drops.

If spending stays the same, credit utilisation increases.

Higher utilisation often signals risk.

That alone can nudge the score down.

Credit age takes a hit

Older cards carry history.

Payment records. Time.

Closing an old credit card reduces the average age of credit accounts.

Shorter history usually looks weaker to scoring systems.

That’s why closing the oldest card often hurts more than expected.

When closing a card hurts the most

Impact is usually higher if:

• The card has a high credit limit
• The card is one of the oldest
• Other cards carry balances

In these cases, closing changes the profile quickly.

When closing a card may not hurt much

Sometimes the impact is minimal.

For example:

• The card is new
• Credit limits are low
• Other cards have strong history
• Balances are fully paid

Context decides outcome. Always.

Is it ever a good idea to close a credit card?

Yes. In some situations.

• High annual fees with no value
• Poor spending control
• Rare usage
• Too many cards to manage

Mental peace matters too. Not everything is about points.

What to do before closing a card

Quick tip. Before closing:

• Pay off full outstanding balance
• Check impact on total credit limit
• Keep older cards active if possible

Small steps reduce damage.

Alternatives to closing

Instead of closing:

• Convert to a no-fee card
• Keep it active with small spends
• Use it once in a few months

This keeps history alive.

FAQ

Does closing a credit card immediately drop credit score?

Not always, but changes show over time.

Is it bad to close an unused credit card?

Depends on age and credit limit.

Does paying off card before closing help?

Yes, it prevents extra utilisation impact.

In short

Closing a credit card can affect credit score.

How much depends on history and limits.

Old cards carry more weight than expected.

Thinking of closing a card but unsure about the impact?