Closing Credit Cards Can Harm CIBIL Score: Understand the Risks!

• Closing a credit card reduces total credit limit, potentially increasing credit utilization.
• Increased credit utilization can negatively impact your CIBIL score, making it appear lower.
• Closing an old card shortens your credit history, making your profile seem newer and riskier.
• Payment history remains even after closing a card, preserving records of timely payments.
• Consider closing cards with high annual fees or those difficult to manage, but avoid closing your oldest card.

Why It Matters: Closing credit cards can unexpectedly lower your CIBIL score by increasing utilization and shortening credit history.