Closing does not clear the balance
Closing a credit card stops new spending but the existing balance and interest continue. You still owe the money.
Closing can affect your credit score short-term because it reduces your total credit availability and may increase your utilisation ratio on other cards.
When to close
The card has an annual fee you cannot justify.
You cannot resist spending on the card and need to remove the temptation.
You are simplifying finances after debt repayment.
When not to close
The card is a long-standing account with a good repayment history — this contributes positively to your credit file.
You have a plan to repay the balance and closing does not help.
Closing would push your utilisation ratio high on remaining cards.
Alternative approaches
Freeze the card (physically hide it, remove it from apps) rather than close it.
Set a low limit to prevent overuse rather than close.
Use the card only for small, planned purchases to maintain positive credit history without accumulating debt.