Credit score impact due to CC closure?

I was checking my Credit Simple credit score and it came down ~100 points (from ~800 to ~700). I was curious why it's reduced since I have not defaulted any payments and changes to the circumstances which could impact the credit rating.

I have enquired with Credit Simple and I received the following response. I dint understand the logic why drop in credit score if I close my credit cards. In my view, it's positive, or neutral, surely not negative. How come these guys can drop the credit score if they dont receive any positive information about my file. I sent them email asking for clarification.

Do I really need to worry about Credit Simple Credit score?

Thank you for contacting Credit Simple.
The reason for the drop in your score is due to closing your accounts. Because of this, there is no longer any positive information going into your credit report such as paying bills on time ECT.

 

You really don't need to worry about this. A credit score of 700 is unlikely to affect anything and your credit report showing that you don't have any ongoing commitments is a very significant positive.

Make sure you get something from the card provider confirming the card has been closed. It may come in hand if you intend to apply for finance in the next year or two.