Closing an old, paid credit card is a tempting step after eliminating debt — it feels tidy and prevents future temptation — but the statement that doing so **always** improves your credit score is false. Credit scores consider factors like length of credit history and credit utilization. Closing a long-standing account can shorten your average account age (especially if it’s one of your oldest accounts), and it reduces your total available revolving credit, which can raise utilization if balances remain on other cards. Both effects can reduce score, at least in the short term. For people with thin credit files, the impact can be more pronounced.

The practical approach is to weigh tradeoffs: if an old card has no annual fee and you’re disciplined, keeping it open can benefit score and available credit. If the card charges a fee you don’t want, consider downgrading to a no-fee product or contacting the issuer rather than closing outright. If you do close a card, monitor utilization and credit reports afterward and consider strategies to offset any score impact (pay down balances, avoid new credit inquiries). In short, closing an old account can sometimes harm your score, so the decision should be intentional, not automatic.