Does It Hurt Your Credit to Close a Credit Card?

Yes, closing a credit card can hurt your credit score, at least in the short term.

It can raise your credit utilization (because you have less available credit) and it can shorten your average credit history.

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Why Closing a Card Can Lower Your Score

1) Your credit utilization can go up

Credit utilization is how much credit you are using compared to how much you have available.

When you close a card, your total available credit usually drops, so your utilization can rise even if your spending stays the same.

2) Your credit history can look shorter

Credit scores reward longer, steady credit history.

Closing a card can reduce the average age of your accounts, especially if it is an older card.

When Closing a Card Might Be Worth It Anyway

Closing can still make sense if:

• You are paying an annual fee you do not want to keep paying

• The card tempts you to overspend

• You are simplifying your finances and can handle a small score dip

Good news: any dip is often temporary if you keep using credit responsibly after.

How to Close a Credit Card With Less Risk

• Pay the balance to $0 first (and stop new spending on it)

• Move subscriptions (Netflix, phone bill, etc.) to another payment method

• Redeem rewards before you close, if you have any

• If it has no annual fee, consider keeping it open instead, especially if it is your oldest card

If you are applying for a mortgage or loan soon, it is usually smart to avoid big changes until after you are approved.