does closing credit card affect cibil score

Yes, closing a credit card can negatively affect your CIBIL Score. This decision impacts your credit health primarily due to two key factors:

• It increases your Credit Utilization Ratio by lowering your total available credit limit. A high ratio (above 30%) is seen negatively by lenders.
• It can reduce the Average Age of your Accounts, especially if you close an older card, which shortens your length of credit history.

It is important to consider these factors before cancelling a card to minimize any temporary dip in your score.