Yes, when you close a credit card account, you lose the available credit limit on that account. ... Another reason closing a credit card can cause your score to drop is that it can lower the average age of accounts on your credit report, especially if it's an account that's been open for a long time.
See the following for more information.
https://www.experian.com/blogs/ask-experian/will-closing-a-credit-card-hurt-your-credit/#:~:text=For...
