Impact of accounts closed by the bank to credit score

It depends.

Did you ask the institution to close the account because you have too many credit cards out there?

Did the institution close the account because you have not used the credit card in a long time?

Did the institution close the account because you have a bad record? late paying, overextended, etc., etc.?

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Generally you don't want to have too many credit cards with too much limit available. It can reflect poorly on your credit score. For example, you could have six credit cards with $20,000 limit each and you are a good payer (you pay your due amounts on time and are never late). If you only really used two of those cards in the last two years then you might want to consider cancelling two out of the six cards. This means that you would have four cards with 20K limit each - a total of $80K limit in potential credit card debt you could have out there. A lender would look favorably on you cutting 20K of your available c/card limit and consider letting you have a loan. The higher the credit limits you have available across a large number of credit card accounts, the more concerned a lender would be that you would use up those limits and overextend yourself and not be able to pay back a mortgage/loan to them.

They want to see a good paying record on any credit cards you do have open and see that you have a manageable/reasonable number of credit cards.

Also, it can take some time for the credit reporting agencies to find out about an account being closed, unless it was for a bad reason (late payments, did not repay bills). Then they are quick to report you to the agencies. If you closed the credit card yourself, follow-up with the agencies if it does not show up on your credit report within a few months. Otherwise it will still show as available credit and a lender might not like to see you have six credit cards with lots of available limit out there.