How Credit Card Closure Can Impact Your Credit Score
Antara Bhattacharyya
Closing a credit card reduces available credit, increasing utilization ratio, which can quickly lower your credit score significantly over time.
Account closure shortens your credit history, especially if it is old, negatively affecting the scoring models lenders widely use.
Shutting cards may reduce credit mix diversity, making your profile appear less balanced to lenders during loan or card evaluations.
Closed cards with unpaid balances still require repayment, and missed payments can continue damaging your credit score for many months.
Strategic closure after paying balances and keeping older accounts open helps minimize negative effects on credit health and long-term stability goals.