Kumiko Love Instagram – One of the most common questions I get is this:
“I finally paid off my credit card… should I close the account?”
A lot of people assume the answer is always yes. You paid it off, you’re done, close it and move on. But it’s actually a little more than that.
Closing a credit card can affect your credit score depending on your situation. One of the biggest things it can impact is your credit utilization, which is how much of your available credit you’re using.
When you close a card, your total available credit can drop. If you still carry balances on other cards, that can cause your utilization percentage to go up, which can affect your credit score.
Another factor is the age of your credit history. Older accounts can strengthen your credit profile, so closing a long standing card isn’t always the best move either.
But there are also times where closing a card makes sense. If it has a high annual fee, encourages overspending, or represents a financial habit you’re trying to leave behind, keeping it open just for the sake of your credit score might not be worth it.
This is why I always say your financial behavior matters more than the number attached to your credit report.
Paying off a credit card is a huge step forward. Whether you keep the account open or decide to close it, that progress is something to be proud of.
If you credit score does drop a little, it’s temporary and usually goes back up!
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#creditscore
#creditcards
#personalfinance
#debtfreejourney
#financialliteracy | Posted on 20/Mar/2026 00:58:07
