New Delhi, Dec. 15 -- It's December, and the calendar year is coming to a close soon. The year-end is a good time to review, reflect on the past year, and prepare for the coming year. As part of your year-end financial review, you may decide to close one or multiple credit cards for various reasons. In this article, we will understand why people close credit cards, how it impacts their credit score, and whether one should be concerned about it.

There are various reasons why people decide to close their credit card(s), some of which are as follows.

Closing a credit card may result in a marginal fall in your credit score. The reasons for it include the following.

A healthy credit mix contributes positively towards enhancing an individual...