Credit Card Closure: Does it Lower Your Credit Score? Know the Truth

• Closing an old credit card can impact your credit score, though often temporarily.
• Reasons for impact include changes to credit mix, reduced average credit history age, and increased credit utilization ratio.
• For new credit users, closing a card early can halt credit history building.
• To mitigate negative effects, keep lifetime free cards active or negotiate annual fees with the bank.
• Consider increasing credit limits on other cards if closing one raises your credit utilization ratio.

Why It Matters: Closing old credit cards can negatively impact your credit score.