Closing a credit card can hurt your credit score, but the impact depends on several factors including your overall credit utilization and the age of the account.
Always pay your statement balance in full each month — not just the minimum. Carrying a balance costs the average American over $1,200 per year in interest charges.
How Closing a Card Affects Your Score
When you close a credit card, two key credit score factors are affected: credit utilization ratio and average age of accounts. Both can cause a temporary score dip.
When Closing a Card Makes Sense
Despite the potential score impact, closing a card may be the right move if it carries a high annual fee you cannot justify, or if you struggle with overspending.
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Frequently Asked Questions
How much will my score drop if I close a credit card?
Most people see a 5–15 point drop, though the impact varies based on your overall credit profile.