Does closing a credit card affect credit score?

Yes, closing a credit card can impact your credit score. It primarily affects the following factors:

• Credit Utilization Ratio: Your total available credit limit decreases. If you carry balances on other cards, your utilization percentage rises, which can lower your score.
• Credit History Age: Closing an older account may eventually reduce the average age of your credit history, potentially affecting your score.
• Credit Mix: Closing your only credit card can reduce the variety of credit types in your profile.

To minimize the impact, ensure all outstanding dues are cleared before closing the account.