The Short Answer: Probably not. Here’s why.
It feels intuitive: “I don’t use this card, so I should close it to simplify my life.” But in the world of credit, an empty, old card is actually working hard for you.
The “Age” Factor: 15% of your score is based on how long you’ve had credit. If you close your oldest card (the one you got in college), you instantly shorten your credit history, making you look less experienced to lenders.
The “Buffer” Factor: Your score also looks at your total available credit. If you have two cards with $5,000 limits, you have $10,000 in total “buffer.” If you close one, your total limit drops to $5,000. Now, a $1,000 balance looks like 20% utilization instead of 10%. Your score will drop because you look “closer to being maxed out.”
When should you close it? Only if it has a high annual fee that you aren’t using, or if having the open line of credit is a genuine temptation for you to overspend. Otherwise, put it in a drawer and let it grow old.
Closing old credit cards can hurt your credit score by reducing your available credit and shortening your credit history. Unless the card has high fees or encourages overspending, it’s often better to keep it open for long-term credit health.
One major factor in your credit score is the length of your credit history. Older accounts show lenders that you have long-term experience managing credit. When you close an old card, you may shorten your average account age over time, which can negatively impact your score.
Another important factor is credit utilization — the amount of credit you’re using compared to your total available credit. Closing a card reduces your total available credit limit. Even if your spending stays the same, your utilization ratio may increase, which can lower your score.
That said, there are situations where closing a card makes sense:
The card has high annual fees with no benefits.
You struggle with overspending on that account.
The account has unfavorable terms.
If you decide to keep old credit cards open, consider using them occasionally for small purchases and paying the balance in full. This keeps the account active and in good standing.
Before closing any credit account, review how it may affect your credit age, utilization, and overall profile. A thoughtful decision today can protect your long-term financial health.