How Your Credit Score Changes When You Close a Credit Card

Closing a credit card seems like a harmless way to simplify your wallet, but it can trigger a surprising drop in your credit score. In this episode, Lucas and Luna break down exactly what happens when you close a card — how it affects your credit utilization ratio, the length of your credit history, and the mix of accounts on your report. They walk through a real example: someone with three cards and a total credit limit of $15,000 who closes their oldest card with a $5,000 limit. The utilization ratio jumps from 20% to 30% overnight, and the average age of accounts shrinks. They also discuss the 'closed account stays on your report for 10 years' rule — and why it doesn't fully protect your score. If you're thinking of canceling a card with an annual fee, this episode will help you decide whether to close it or keep it open with minimal use. #CreditScore #FICO #ClosedCreditCard #CreditUtilization #CreditHistory #Finance #PersonalFinance #CreditReport #CreditCardTips #AnnualFee #AverageAgeOfAccounts #CreditMix #FexingoBusiness #BusinessPodcast #TheCreditScorePodcast #LucasAndLuna #BorrowerHealth #FinancialLiteracy Keep every episode free: buymeacoffee.com/fexingo