Closing a Credit Card? Beware: It Can Seriously Damage Your Credit Score!

• Closing a credit card can negatively impact your credit utilization ratio, a key factor in your credit score, by reducing your total available credit.
• Shutting down an old credit card can shorten your average credit history, making your credit profile appear less trustworthy.
• Closing a card can alter your credit mix, especially if it's your only credit product, potentially affecting your overall credit profile.
• While closing a card with high annual fees might be necessary, ensure outstanding balances on other cards are low to mitigate utilization impact.
• Always clear all liabilities and obtain written confirmation when closing a credit card to protect your financial standing.