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.
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.
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.