Should you close a credit card?

How closing a card can affect your score, and when it still makes sense.

Your available credit drops

Closing a card removes its limit, so the same balances on your other cards become a higher percentage of your total limits. That can lower your score.

History does not vanish right away

A closed account paid as agreed can stay on your report for up to 10 years, so it keeps helping your history for a while.

When closing makes sense

A high annual fee you do not want to pay, a card you cannot stop overspending on, or a joint card after a divorce are good reasons.

Alternatives

Ask the issuer to switch you to a no-fee card on the same account, or keep the card open with one small charge you pay off each month.