(NewsNation) — Closing a credit card is an option for people who may be trying to limit their debt or who may not be using the card anymore.

But is it a good idea to close one?

Does closing a card hurt my credit score?

Experts say it can.

Creditors look at how long you have been building credit. The age of your oldest account is a consideration.

“Closing an account can reduce the average age of your credit accounts, which could cause a drop in your credit scores,” according to CapitalOne.

The amount of available credit you’re using among all open cards also matters.

“Experts recommend keeping your credit utilization below 30% of your available credit to avoid a negative impact on your scores,” CapitalOne said.

Overall, closing an account shouldn’t have a major impact.

When to keep a credit card open

Keeping an account open carries some benefits.

It could help you maintain a lower credit utilization ratio.

If the credit card is your only, or one of the only, sources of credit, keeping it open would be a good decision.

If you have an upcoming large purchase, such as a home or car loan, the open account could help strengthen your loan application.

When to close a credit card account

Some reasons you may want to close an account include eliminating a high annual fee, reducing the interest or avoiding overspending.

“You could see a drop in your credit scores, but that drop will likely be smaller than what you’d see if you maxed your card out and couldn’t pay it off,” CapitalOne said.

Before doing so, you will want to ensure you pay off the balance, get confirmation of the cancellation and check your credit reports.