Maintaining a healthy credit score is a critical component of financial wellbeing, and understanding the nuances of credit card management is crucial.

One common question that often arises is:

Does closing a credit card hurt your score?

The answer is not as straightforward as it may seem, and it's essential to consider the various factors at play.

📈 Credit utilization ratio:

One of the key factors that influence your credit score is your credit utilization ratio, which is the percentage of your available credit that you're using.

When you close a credit card, your total available credit decreases, which can cause your utilization ratio to increase, potentially leading to a drop in your credit score. - https://lendinghelpguide.com/blog/closing-credit-card-impact/?unique_id_vvxts2h6

The Hidden Impact of Closing a Credit Card on Your Credit Score