How Does Closing A Credit Card Affect My Score?

Closing a credit card can have a significant, though often misunderstood, impact on your credit score. Understanding these effects is crucial for maintaining healthy credit. This guide will break down precisely how shutting down an account influences your creditworthiness, helping you make informed decisions.

Understanding Credit Scores: The Foundation

Before diving into the specifics of closing a credit card, it's essential to grasp what a credit score is and why it matters. Your credit score is a three-digit number, typically ranging from 300 to 850, that lenders use to assess your creditworthiness. It's a snapshot of your financial behavior, indicating how likely you are to repay borrowed money. A higher score generally signifies lower risk to lenders, making it easier to qualify for loans, mortgages, credit cards, and even rental apartments or jobs. Conversely, a lower score can lead to higher interest rates, lower credit limits, or outright rejection of credit applications.

In 2025, the landscape of credit scoring continues to evolve, with models like FICO 10 and VantageScore 4.0 becoming more prevalent. These newer models often place a greater emphasis on the overall depth and breadth of an individual's credit history. Understanding these underlying scoring mechanisms is the first step in comprehending how closing a credit card can ripple through your financial profile.

Key Factors Affecting Your Credit Score

Credit scoring models, such as the widely used FICO and VantageScore systems, are built upon several key pillars. Each of these factors plays a significant role in determining your overall credit score. Understanding their weight is crucial for making informed decisions about your credit accounts.

Payment History (35% of FICO Score)

This is the most critical factor. It reflects whether you pay your bills on time. Late payments, missed payments, defaults, and bankruptcies can severely damage your score.

credit utilization Ratio (30% of FICO Score)

This measures the amount of credit you're using compared to your total available credit. A lower utilization ratio (ideally below 30%, and even better below 10%) indicates responsible credit management. For example, if you have a total credit limit of $10,000 and you've used $3,000, your utilization is 30%.

Length of Credit History (15% of FICO Score)

This factor considers the age of your oldest credit account, the age of your newest credit account, and the average age of all your accounts. A longer credit history generally suggests more experience managing credit responsibly.

Credit Mix (10% of FICO Score)

Having a mix of different types of credit, such as credit cards, installment loans (like mortgages or auto loans), and personal loans, can be beneficial. It shows lenders you can manage various forms of debt.

New Credit (10% of FICO Score)

This factor looks at how many new credit accounts you've opened recently and how many hard inquiries (when you apply for credit) appear on your report. Opening too many accounts in a short period can signal increased risk.

These percentages are approximate and can vary slightly between different scoring models. However, the general principles remain consistent: responsible payment behavior, low credit utilization, a long credit history, a diverse credit mix, and prudent applications for new credit are the cornerstones of a good credit score.

How Closing a Credit Card Impacts Each Factor

Closing a credit card account, whether intentionally or by default, can influence your credit score in several ways, primarily by affecting the factors mentioned above. The impact isn't always negative; it depends heavily on the specific card you close and your overall credit profile.

Impact on Payment History

Closing a credit card account does not directly remove past payment history from your credit report. All the on-time payments and any late payments associated with that account will remain on your report for up to seven years (or ten years for bankruptcies). Therefore, closing a card doesn't erase your past behavior. However, if you were relying on that card for regular payments and then fail to make payments on other active cards, your payment history on those remaining accounts will suffer, indirectly impacting your score.

Impact on Credit Utilization Ratio

This is often the most significant negative impact of closing a credit card. When you close an account, you reduce your total available credit. Let's say you have two credit cards: Card A with a $5,000 limit and Card B with a $5,000 limit, totaling $10,000 in available credit. If you owe $2,000 on Card A and $1,000 on Card B, your total balance is $3,000. Your credit utilization ratio is $3,000 / $10,000 = 30%.

Now, suppose you close Card B. Your total available credit drops to $5,000. If you still owe $2,000 on Card A and $1,000 on Card B (if it had a balance that was paid off before closing, the impact is different, discussed later), your total balance is still $3,000. However, your utilization ratio now becomes $3,000 / $5,000 = 60%. This sharp increase in your credit utilization ratio can significantly lower your credit score.

Even if you pay off the balance on the card you're closing, the reduction in total credit limit still affects your utilization. If you close Card B and had a $0 balance, your total available credit becomes $5,000, and if you still owe $2,000 on Card A, your utilization is $2,000 / $5,000 = 40%. This is still an increase from the initial 30%.

Impact on Length of Credit History

Closing an older credit card account can reduce the average age of your credit accounts. If the closed card was one of your oldest accounts, its closure will lower the average age, potentially impacting the "Length of Credit History" factor. For instance, if your oldest card is 10 years old, and you close it, your new oldest card might be 5 years old. This decrease in the average age can slightly lower your score, as lenders often favor individuals with a longer track record of managing credit.

However, it's important to note that the closed account itself will remain on your credit report for several years, and its original opening date will still be visible. The impact on the average age calculation is more about the active accounts moving forward. The credit bureaus calculate the average age based on the active accounts listed on your report.

Impact on Credit Mix

If the credit card you are closing is your only credit card, or if it's a unique type of credit (e.g., a store card with special financing options), closing it could negatively affect your credit mix. Lenders like to see that you can manage different types of credit responsibly. If closing a card leaves you with only installment loans, for example, your credit mix might be perceived as less diverse.

However, for most individuals with multiple credit cards and other forms of credit, closing one card is unlikely to have a substantial negative impact on the credit mix factor. The effect is more pronounced for those with very limited credit histories.

Impact on New Credit

Closing a credit card account does not directly affect the "New Credit" factor. This factor is primarily concerned with recent applications for credit and newly opened accounts. However, if closing a card leads you to open new credit accounts to compensate for lost credit or to manage finances differently, then those actions would impact the new credit factor.

In summary, the most immediate and often detrimental effect of closing a credit card is the increase in your credit utilization ratio due to reduced total available credit. The impact on the length of your credit history is also a consideration, particularly if the closed card was an old one.

Credit Utilization Ratio Explained

The credit utilization ratio (CUR) is a critical component of your credit score, accounting for a substantial portion of its calculation. It's expressed as a percentage and represents how much of your available credit you are currently using. The formula is straightforward:

Credit Utilization Ratio = (Total Balances on Revolving Credit Accounts / Total Credit Limits on Revolving Credit Accounts) * 100

Revolving credit accounts primarily include credit cards. Installment loans, like mortgages or auto loans, are not typically included in this calculation because they have fixed payment schedules.

Why is a low CUR important?

• Indicates Financial Discipline: A low CUR suggests that you are not over-reliant on credit and can manage your spending within your means. Lenders see this as a sign of responsible financial behavior.
• Reduces Risk for Lenders: When you use a large portion of your available credit, it signals to lenders that you might be experiencing financial difficulties or are at a higher risk of defaulting on future payments.
• Boosts Credit Scores: Maintaining a low CUR is one of the most effective ways to improve or maintain a high credit score.

What is considered a good CUR?

• Excellent: Below 10%
• Good: 10% - 30%
• Fair: 30% - 50%
• Poor: Above 50%

Closing a credit card directly reduces your total available credit. If you have outstanding balances on your other cards, this reduction will automatically increase your CUR, potentially leading to a drop in your credit score. For example, if you have a $5,000 credit limit on Card A and a $5,000 limit on Card B, totaling $10,000 in available credit. If you owe $1,000 on Card A, your CUR is 10%. If you close Card B, your total available credit drops to $5,000. Your CUR then jumps to $1,000 / $5,000 = 20%, which is a significant increase.

It's crucial to monitor your CUR regularly and aim to keep it as low as possible. Paying down balances before closing an account, or strategically closing cards with zero balances, can help mitigate the negative impact on your utilization ratio.

Average Age of Accounts Explained

The average age of your credit accounts is another factor that influences your credit score. This metric reflects how long you've been managing credit. A longer average age generally indicates more experience with credit and is viewed favorably by lenders.

The calculation involves summing the ages of all your open credit accounts and dividing by the number of open accounts. Some scoring models also consider the age of closed accounts that are still reported on your credit file, but the primary focus is usually on active accounts.

Example:

• Account 1 (Credit Card): Opened 10 years ago (120 months)
• Account 2 (Auto Loan): Opened 5 years ago (60 months)
• Account 3 (Credit Card): Opened 2 years ago (24 months)

The total age of these accounts is 120 + 60 + 24 = 204 months. The average age is 204 months / 3 accounts = 68 months (or 5 years and 8 months).

How Closing a Card Affects Average Age:

If you close your oldest account (Account 1 in the example), your remaining accounts are Account 2 (60 months) and Account 3 (24 months). The new total age is 60 + 24 = 84 months. The new average age is 84 months / 2 accounts = 42 months (or 3 years and 6 months). This is a substantial decrease in the average age of your credit history.

While the impact of closing a card on the average age is less dramatic than on credit utilization, it can still contribute to a slight dip in your credit score, especially if the closed card was a significant contributor to your overall credit history length.

Types of Credit Cards and Their Impact

Not all credit cards are created equal, and the type of card you close can influence the severity of the impact on your credit score. Understanding the characteristics of different cards helps in making strategic decisions.

No-Annual-Fee vs. Annual-Fee Cards

No-Annual-Fee Cards: Closing a no-annual-fee card typically has a more pronounced negative impact on your credit utilization ratio because you lose that available credit without any associated cost. If you have many no-annual-fee cards, closing one reduces your overall credit limit, potentially increasing your utilization.

Annual-Fee Cards: These cards often come with higher credit limits. Closing an annual-fee card might lead to a larger reduction in your total available credit, thus having a more significant negative impact on your credit utilization ratio. However, if you're closing it to save on the annual fee and have other cards with ample credit, the impact might be manageable. Many people close these cards when the benefits no longer outweigh the cost.

Store Credit Cards (Retail Cards)

Store credit cards often have lower credit limits compared to general-purpose credit cards. Closing a store card, especially if it's one of your older accounts or has a significant portion of your total available credit, can still negatively affect your credit utilization ratio and the average age of your accounts. While their individual impact might be smaller, collectively, they contribute to your credit profile.

Secured Credit Cards

Secured credit cards require a cash deposit as collateral. They are often used by individuals with limited or poor credit to build or rebuild their credit history. If you've successfully managed a secured card and are looking to close it, the impact on your credit score will depend on your overall credit profile. If it was your only card or one of your oldest, closing it could reduce your credit history length and available credit. However, if you've transitioned to unsecured cards, closing a secured card might be a logical step.

Co-branded and Rewards Cards

These cards often have higher credit limits and are popular for their perks. Closing a co-branded card (e.g., an airline or hotel card) or a general rewards card can significantly impact your credit utilization ratio due to the loss of available credit. If you are closing it due to a high annual fee that you no longer find justifiable, weigh the potential credit score drop against the savings. If you have other cards with substantial limits, the utilization impact might be less severe.

Charge Cards

Charge cards, like some American Express products, require you to pay the balance in full each month. They typically do not have a pre-set spending limit, but they do contribute to your overall credit report. Closing a charge card will reduce your available credit (though it's not a traditional credit limit) and can affect your credit history length. The impact on utilization is less direct since there's no revolving balance, but the loss of the account still matters.

The key takeaway is that the impact is often proportional to the card's contribution to your overall credit profile. A card with a high credit limit and a long history will have a more significant impact when closed than a card with a low limit and a short history.

Strategies for Minimizing Negative Impact

Closing a credit card doesn't have to be a disaster for your credit score. By employing smart strategies, you can mitigate potential negative effects and ensure your credit remains in good standing.

1. Keep Old, Unused Cards Open (If No Annual Fee)

If a credit card has no annual fee and you don't use it, consider keeping it open. This helps maintain the length of your credit history and contributes to your total available credit, thereby keeping your credit utilization ratio lower. Even making a small purchase on it once every few months and paying it off immediately can keep the account active.

2. Pay Down Balances Before Closing

If you decide to close a card with a balance, pay it off in full before you initiate the closure. This prevents the balance from being transferred to other cards and artificially inflating their utilization, and it ensures the card is closed with a zero balance, which is cleaner on your report. However, remember that even with a zero balance, the reduction in credit limit will still affect your overall utilization.

3. Strategically Close Cards

Prioritize closing cards that have annual fees you no longer want to pay, or cards with very low credit limits that don't contribute much to your overall credit availability. If you have multiple cards with high limits, closing one with a lower limit might have a less significant impact on your utilization ratio.

4. Monitor Your Credit Score

After closing an account, keep a close eye on your credit score and credit report. This will help you identify any unexpected negative impacts and allow you to take corrective action if necessary. Many credit card issuers and financial institutions offer free credit score monitoring services.

5. Increase Credit Limits on Other Cards

If you're concerned about the impact on your credit utilization, consider requesting a credit limit increase on your other, well-managed credit cards. If approved, this will increase your total available credit, helping to offset the reduction from closing an account and potentially lowering your overall utilization ratio.

6. Avoid Closing Your Oldest Account

Your oldest credit account significantly contributes to the average age of your credit history. Unless there's a compelling reason (like a high annual fee you can't justify), try to keep your oldest card open, even if you use it infrequently.

7. Understand the Issuer's Policy

Some credit card issuers may automatically close inactive accounts after a certain period of inactivity. If you want to keep an account open, make sure to use it periodically. Conversely, if you want to close an account, you usually need to initiate the request yourself.

By following these strategies, you can make informed decisions about which cards to close and how to manage your credit profile effectively, minimizing any potential damage to your credit score.

When Closing a Card Might Be Beneficial

While closing a credit card often carries potential risks to your credit score, there are specific situations where the benefits outweigh the drawbacks, making it a sensible financial decision.

1. Avoiding High Annual Fees

Many rewards credit cards come with substantial annual fees. If you're no longer utilizing the card's benefits enough to justify the fee (e.g., you're not traveling as much to use airline miles, or the rewards no longer align with your spending habits), closing the card can save you money. The cost savings might be more valuable than the minor potential dip in your credit score, especially if you have other cards that maintain good utilization and history.

Example: A travel rewards card with a $400 annual fee. If you haven't used its travel perks in the past year and are not planning to, closing it saves you $400. This saving can be reinvested or used to pay down debt on other cards, potentially improving your financial health more than keeping the card.

2. Consolidating and Simplifying Finances

Managing too many credit cards can become overwhelming. Closing unused or redundant cards can simplify your financial life, making it easier to track payments, monitor spending, and avoid missed payments. Fewer accounts mean less clutter on your credit report, which can reduce the risk of errors or fraud.

3. Eliminating Temptation for Overspending

If you have a tendency to overspend or accumulate debt, closing credit cards that you find particularly tempting can be a proactive step towards better financial discipline. By removing the easy access to credit, you force yourself to be more mindful of your spending.

4. Dealing with Fraudulent Activity or Unwanted Changes

If a credit card issuer has experienced a significant data breach, or if the terms and conditions of a card have changed unfavorably (e.g., interest rates increased significantly, rewards were devalued), closing the card might be a protective measure. This is especially true if you have concerns about the security of your information with that particular issuer.

5. When the Card is a Liability (e.g., High Interest, Low Limit)

If a card has a very high interest rate and you carry a balance, the cost of carrying that debt can be substantial. While it's generally better to pay off debt, if you're struggling, closing such a card (after paying it off) can prevent further interest accumulation. Similarly, if a card has a very low credit limit and you have many other cards with high limits, closing it might not significantly impact your utilization ratio.

6. As Part of a Debt Reduction Strategy

In some aggressive debt reduction plans, individuals might choose to close all but one or two credit cards to focus all their repayment efforts on eliminating debt on those remaining accounts. This can provide a psychological boost and simplify the repayment process.

It's important to weigh the financial savings or simplification benefits against the potential credit score impact. In many of these scenarios, the positive financial outcomes are more significant and sustainable in the long run than the temporary dip in a credit score.

Alternatives to Closing a Credit Card

Before you decide to close a credit card account, consider these alternatives that can help you manage your credit and finances without negatively impacting your score.

1. Reduce Your Credit Limit

If your primary concern is reducing available credit to curb spending, you can request a credit limit reduction from the card issuer. This will lower your total available credit, but it's often less impactful on your credit utilization ratio than closing the card entirely, as the account remains open and contributes to your credit history length. However, be aware that a lower limit might also mean a lower credit utilization percentage if you carry a balance.

2. Convert to a Different Card Product

Some issuers allow you to convert a credit card to a different product within their network. For example, you might convert a high-annual-fee rewards card to a no-annual-fee card from the same issuer. This keeps the account open, preserves your credit history length, and maintains your available credit, while potentially eliminating unwanted fees or features.

3. Use the Card Sparingly and Strategically

If you want to keep an old account open for its contribution to your credit history length but don't want to use it often, make a small purchase on it every few months and pay the balance off immediately. This keeps the account active and prevents the issuer from closing it due to inactivity. It also ensures you don't carry a balance and incur interest.

4. Negotiate Fees or Terms

If you're considering closing a card due to a high annual fee, try contacting the issuer's customer service. They might be willing to waive the fee, offer a reduced fee, or provide a different rewards structure to retain you as a customer. This is particularly effective for cards you've held for a long time and have a good payment history with.

5. Balance Transfer to a Lower-Interest Card

If you're struggling with high interest on a particular card, consider transferring the balance to a card with a lower introductory or ongoing APR. While this doesn't involve closing the original card, it's a strategy to manage debt more effectively and reduce the financial burden. Be mindful of balance transfer fees and the APR after the introductory period ends.

6. Focus on Paying Down Balances

The most effective way to improve your credit utilization ratio is to pay down the balances on your existing credit cards. Reducing your debt means you're using less of your available credit, which is a positive signal to credit bureaus and lenders.

These alternatives offer ways to manage your credit responsibly and achieve your financial goals without the potential negative consequences of closing an account. Always evaluate your specific situation and financial objectives before making a decision.

Real-World Scenarios and Examples

To illustrate the impact of closing a credit card, let's examine a few common scenarios.

Scenario 1: The Young Professional with One Card

Profile: Sarah, 23, recently graduated and has one credit card opened two years ago with a $3,000 limit. She uses it for most purchases and pays it off monthly. Her credit score is 720.

Action: Sarah decides to close the card because she wants to simplify her finances and avoid any temptation to overspend. She has no balance on the card.

Impact:

• Credit Utilization: Her total available credit drops from $3,000 to $0. If she has no other credit, her utilization becomes undefined or very high if she has any other small credit lines. This is a significant negative impact.
• Length of Credit History: Her average credit age decreases as her only account is now gone.
• Overall Score: Her score could drop significantly, potentially by 50-100 points, making it harder to qualify for future loans or better credit cards.

Recommendation: Sarah should not close this card. Instead, she should keep it open and use it minimally while focusing on building more credit history and potentially opening another card responsibly.

Scenario 2: The Avid Traveler with Multiple Rewards Cards

Profile: Mark, 45, travels frequently for business and leisure. He has three premium travel rewards cards, each with a $15,000 limit, and a mortgage. His total credit card limit is $45,000. He carries a total balance of $5,000 across all cards. His credit score is 780.

Action: Mark decides to close one of his travel cards because its $500 annual fee no longer justifies the benefits for his current travel patterns. He has a $0 balance on this card.

Impact:

His total available credit drops from $45,000 to $30,000. His total balance remains $5,000.

• Credit Utilization: His utilization was $5,000 / $45,000 = 11.1%. After closing the card, it becomes $5,000 / $30,000 = 16.7%. This is an increase, but still well within the excellent range (below 30%).
• Length of Credit History: If the closed card was one of his older accounts, the average age might slightly decrease, but with other long-standing accounts, the impact is minimal.
• Overall Score: The impact on his score is likely to be negligible, perhaps a few points, because his utilization remains low and he has a strong credit history.

Recommendation: This is a reasonable decision for Mark. The savings on the annual fee outweigh the minor increase in utilization, which remains healthy.

Scenario 3: The Individual Consolidating Debt

Profile: Emily, 30, has accumulated debt on several store credit cards and a general rewards card. Her total credit card limit is $10,000, and she owes $8,000. Her credit score is 650.

Action: Emily decides to get a 0% introductory APR balance transfer card and transfers all her debt to it. She then closes three of the store cards that had high interest rates and low limits (totaling $3,000 in credit limits) and a $0 balance.

Impact:

Her total available credit drops from $10,000 to $7,000. Her total debt is now consolidated on one card, but the utilization on her *other* cards (if any remain) is now calculated against a lower total limit.

• Credit Utilization: The immediate impact on overall utilization is a significant increase, as her total available credit is reduced. However, by consolidating debt onto a single card, she might be able to manage payments more effectively. The key is the balance transfer itself and paying it down.
• Length of Credit History: Closing older store cards might reduce her average credit age.
• Overall Score: Initially, the score might drop due to increased utilization and reduced credit history length. However, if she successfully pays down the consolidated debt on the new card, her score could improve over time.

Recommendation: This strategy can be effective if executed properly. The critical step is to have a concrete plan to pay down the consolidated debt within the 0% APR period. Closing the high-interest store cards eliminates costly debt sources.

These scenarios highlight that the impact of closing a credit card is highly personal and depends on your existing credit profile, the specific card being closed, and your overall financial strategy.

Expert Advice and 2025 Insights

As we navigate 2025, credit scoring models and consumer financial behaviors continue to evolve. Experts emphasize a nuanced approach to managing credit, including decisions about closing accounts.

The Rise of AI in Credit Scoring

In 2025, Artificial Intelligence (AI) and Machine Learning (ML) are playing an increasingly significant role in credit scoring. Newer models, like the advanced versions of FICO and VantageScore, utilize AI to analyze a broader range of data points and identify more complex patterns in consumer behavior. This means that decisions like closing a credit card might be assessed with greater sophistication, looking beyond simple metrics to understand the underlying financial intent and overall financial health.

Expert Insight: "AI allows for more predictive modeling. Closing a card might be flagged not just for its impact on utilization, but also for its potential correlation with other financial stressors or strategic financial management, depending on the user's broader credit profile."

Emphasis on Real Credit Health

The trend in 2025 is moving away from simply accumulating credit accounts towards demonstrating consistent, responsible credit management. This includes paying bills on time, keeping utilization low, and managing debt effectively. Closing a card is viewed in the context of this broader picture.

Expert Insight: "Lenders are increasingly looking for evidence of sustainable financial habits. Closing a card solely to 'game' a system or because of a minor inconvenience might be viewed less favorably than closing it as part of a well-thought-out strategy to reduce debt or simplify finances."

The Importance of "Healthy" Inactivity

For cards with no annual fee that you don't use, the advice remains consistent: keep them open. However, credit card issuers are becoming more aggressive in closing accounts that show prolonged inactivity. If an issuer closes your account due to inactivity, it still reduces your available credit and can negatively impact your score.

Expert Insight: "If you have a no-annual-fee card that you want to keep for credit history and utilization purposes, make a small purchase on it at least once every 6-12 months and pay it off immediately. This signals to the issuer that the account is still active and valuable."

Potential for 'Soft' Closures

Some experts suggest that the way a card is closed might matter. While there's no official distinction in scoring models, closing a card by calling customer service and explaining your reasons might be perceived differently by the issuer than simply stopping payments (which leads to default and severe score damage). However, for credit scoring purposes, the outcome – reduced credit limit – is the primary factor.

Focus on Credit Utilization: The Unchanging King

Despite evolving models, credit utilization remains one of the most significant drivers of credit scores. Closing a card that contributes substantially to your available credit will almost always increase your utilization ratio, unless you have ample credit elsewhere and no balances.

Expert Insight: "For the vast majority of consumers, the most immediate and noticeable impact of closing a credit card will be on their credit utilization ratio. Always calculate this potential increase before making a decision."

2025 Statistics to Consider:

• Average Credit Utilization: The ideal credit utilization ratio for a good credit score is generally considered to be below 30%, with below 10% being excellent. In 2025, lenders are increasingly scrutinizing this metric.
• Average Credit Card Debt: As of early 2025, average credit card debt per household continues to be a concern for many consumers, making responsible credit management more critical than ever.
• Impact of High Utilization: A credit utilization ratio above 50% can significantly lower your credit score, often by 50-100 points or more.

In conclusion, while closing a credit card can be a strategic financial move in certain circumstances, it's crucial to understand the potential impact on your credit score, particularly your credit utilization ratio and credit history length. Always prioritize maintaining a low utilization and a long credit history. If you're unsure, consult with a trusted financial advisor or credit counselor.

Conclusion

Closing a credit card account is a decision that requires careful consideration of its multifaceted impact on your credit score. The primary effects revolve around your credit utilization ratio, which can rise sharply as your total available credit decreases, and the length of your credit history, which may shorten if an older account is closed. While these factors can lead to a lower score, the extent of the damage depends heavily on your individual credit profile, the specific card being closed, and your overall financial strategy. In 2025, with credit scoring models becoming more sophisticated, maintaining responsible credit habits remains paramount.

Ultimately, the decision to close a credit card should be guided by a thorough analysis of its potential consequences. If the goal is to save on annual fees, simplify finances, or curb overspending, the benefits might outweigh the credit score dip, especially if you employ strategies to mitigate the negative effects. Always prioritize keeping your credit utilization low and your credit history long. If you have any doubts, seeking advice from a financial expert can provide personalized guidance to ensure your credit health remains robust.