When you close a credit card, two things can nudge your score down in the short term. First, your total available credit shrinks, so your credit-utilisation ratio (balances ÷ limits) can jump even if you don’t spend a rupee more. Second, if the card is one of your oldest, you risk shortening your average age of credit over time—lenders like long histories because they signal stability.

Step one: fix utilization before you close

Work out your current utilisation. If you carry Rs 30,000 across cards with a combined Rs 3,00,000 limit, you’re at 10 percent. Close a Rs 1,00,000-limit card and the same spend becomes 15 percent. Aim to keep utilisation under 30 percent at all times—and under 10 percent if you want to look pristine. You can do this by paying balances down ahead of the statement

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