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The impact of closing a credit card account on your credit

Closing a Credit Card on Your Credit Score

Closing a credit card might seem like a simple decision, but it can have implications for your credit score. Let’s take a quick look at how this action can impact your financial standing.

Credit Utilization Ratio:

Closing a credit card reduces your total available credit, potentially increasing your credit utilization ratio.

Length of Credit History:

An older credit card contributes to the length of your credit history. Closing it could shorten this history, affecting your score.

Types of Credit:

A mix of different types of credit is beneficial for your credit score. Closing a credit card might limit this variety.

Credit Age:

The age of your accounts matters. Closing an older credit card could lower the average age of your accounts.

Impact on Payment History:

Positive payment history on the closed card continues to influence your score for a while, but over time, it might have less effect.

Credit Inquiries:

Closing a card won’t remove its history from your report, but it might affect the number of inquiries on your report.

Consideration for Debt Consolidation:

If the card has a high balance, closing it might impact your ability to consolidate debt.


When considering closing a credit card, it’s important to weigh the short-term benefits against the potential impact on your credit score. Understanding how this decision influences various aspects of your credit history can help you make an informed choice.