Does Closing a Credit Card Affect Your CIBIL Score?

Closing a credit card can affect your credit profile depending on your overall credit history and the other accounts you have. When a card is closed, your total available credit may decrease. If your spending remains the same on your other cards, this can increase your overall credit utilization ratio.

Before closing a card, check whether there are any outstanding dues, annual fees, or other charges. If the card has a long credit history or provides useful benefits, consider these factors before making a decision.

Closing one credit card does not automatically mean that your CIBIL score will fall significantly. The actual effect depends on factors such as your other credit accounts, balances, repayment history, and overall credit profile.