Myth: When you close a credit card account, your credit scores will always go down.
Fact: While it is possible for your credit scores to go
down as a result of closing a credit card account, it’s not a
definite. The reason your scores could go down would be due to the loss
of the credit limit of the newly closed card in your debt-to-credit
limit ratio measurements. If you are carrying debt on other credit cards
then your debt-to-limit ratio, which is calculated by dividing your
aggregate credit card debt by your aggregate credit limits on open
credit cards, will likely go up. This can cause your credit scores to go
down. However, if you are not carrying debt on other credit cards or
the credit limit on the newly closed card was modest enough then the
account closure may not result in a change in your debt-to-limit ratio
sufficient to result in a score reduction.