Does closing an old or unused credit card hurt my credit score?

Yes, closing a credit card can damage your credit score in two specific ways: (1) Immediate Utilization Spike: Closing an account immediately eliminates its credit limit from your total available revolving credit pool, which causes your credit utilization ratio to spike if you carry balances on other cards. (2) Long-Term Average Age of Accounts (AAoA): Under FICO scoring models, closed accounts in good standing continue to age and remain on your credit report for 10 full years before dropping off. However, once they drop off after a decade, your average account age will shorten. Unless the card carries an unavoidable annual fee that cannot be downgraded to a $0-fee product, it is usually best to keep old accounts open with a minor recurring charge (like a $2 monthly iCloud subscription) on autopay.