Closing Unused Credit Card? Beware Credit Score Impact!

• Closing a credit card reduces total available credit, increasing your utilisation ratio and potentially lowering your score.
• Shutting your oldest card shortens your credit history, negatively affecting the average age of your accounts.
• An unused card's limit acts as a buffer, keeping your total available credit high and making your profile healthier.
• Close cards with annual fees, if you struggle with overspending, or for fraud risk, but do so strategically.
• For lifetime-free cards, keep them open, lock them, and use occasionally to maintain a strong credit score.

Why It Matters: Closing an unused credit card isn't neutral; it often impacts utilisation and credit age.