Will closing a credit card affect my credit score?

Yes, closing a credit card can affect your credit score. It reduces your total available credit, which may increase your credit utilization ratio. If this ratio exceeds 30 percent, your score could drop. Additionally, closing an old account might eventually reduce the average age of your credit history. However, if the card has high annual fees or encourages overspending, closing it may be a better long-term financial decision. To minimize the impact, ensure all outstanding balances are cleared before closing the account.