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    Credit Cards

    Does closing a credit card affect my CIBIL score?

    Updated · CardKhoj Editorial Team

    Short answer

    Closing a credit card can lower your CIBIL score slightly, because your total available credit drops (raising your utilisation) and, if it is your oldest card, your average credit age falls. The effect is usually small and temporary. Closing a card with a clean, fully paid record never shows as negative.

    Why the score can dip

    • Utilisation rises — if you spend ₹30,000 a month across two cards with ₹1 lakh limits each, utilisation is 15%. Close one and it jumps to 30%.
    • Credit age shortens — closing your oldest card reduces the average age of your accounts.

    How to close a card the right way

    1. Pay the full outstanding, including any EMIs, and redeem reward points.
    2. Request closure by phone, app, email or in writing.
    3. Under RBI rules, the bank must close the card within 7 working days of your request (if no dues are pending). If it fails to do so, it must pay you ₹500 per day of delay.
    4. Check your credit report after 30–60 days to confirm the card shows as “closed” with zero balance.

    When closing makes sense

    Close a card if its annual fee is not worth it and the bank refuses a waiver or downgrade, or if you are tempted to overspend. Otherwise, keeping an old lifetime free card open is good for your score.

    This answer is general information, not personalised financial or tax advice. Rules, rates and limits change — confirm with your bank, the RBI or a qualified adviser before making decisions.