Does closing a credit card affect CIBIL score?

Yes, closing a credit card can affect your CIBIL score. It reduces your total available credit limit, which may increase your credit utilization ratio. If you close an older account, it can also shorten your credit history age, another key factor in score calculation. While the impact is often temporary, it is advisable to pay off all outstanding balances before closure and consider keeping long-standing, no-fee cards active to maintain a healthy credit profile.