So, you’ve got an old credit card sitting in your wallet, or maybe in a drawer, collecting dust.
You’re thinking, “Why not just close it? I don’t use it anyway.”
🚨 STOP right there.
Closing the wrong credit card could send your score crashing, even if you’ve been paying everything on time.
Here’s why, and how to decide which cards should stay open for the sake of your credit health.
Why Closing a Card Can Tank Your Score
Your credit score isn’t just about paying on time. It’s a mix of several factors, and closing a card can hurt two of the biggest ones:
📊 1. Credit Utilization
This is how much of your available credit you’re using.
When you close a card, you reduce your total credit limit, and your utilization percentage spikes.
Example:
• Total credit limit: $10,000
• Total balances: $2,000 (20% utilization = ✅ good)
• You close a card with a $4,000 limit
• New total limit: $6,000
• Utilization jumps to 33% (⚠️ bad!)
High utilization = lower score.
🕰️ 2. Length of Credit History
Creditors love “seasoned” accounts. The longer you’ve had credit, the better.
If you close your oldest card, you could erase years of positive history from your profile.
Pro tip: Even if a closed account stays on your report for a while, its impact fades over time.
So… Which Cards Should You Never Close?
✅ 1. Your Oldest Credit Card
This is your OG account, the one that’s been around the longest. It anchors your credit age.
• Keep it open, even if you don’t use it often.
• Put a small recurring charge on it (like Netflix or Spotify) to keep it active.
✅ 2. Cards With No Annual Fee
If there’s no cost to keep it open, let it ride. Zero-fee cards are perfect for maintaining a healthy utilization ratio.
✅ 3. High-Limit Cards
Even if you rarely swipe it, a high credit limit is gold for your utilization.
Example:
That $8,000 card you’re tempted to cancel? Keeping it open helps you look less risky to lenders.
When It’s OK to Close a Card
Not all cards are worth keeping forever. It’s usually fine to close if:
• 🔥 It charges a high annual fee and you’re not getting value from rewards
• 🔥 You’ve got multiple newer cards with similar limits and better perks
• 🔥 You can pay down your balances first to avoid hurting utilization
Closing the Wrong Card
How Amanda Lost $5,000 in Credit Score Power
Amanda had a credit score of 728. She decided to close her first credit card from college because she “never used it.”
What she didn’t realize:
✅ It was her oldest account (8 years old).
✅ Had a $5,000 limit
When she closed it:
• Her total credit dropped, causing her utilization to spike from 20% to 40%
• Her score plummeted 51 points in just two weeks, from 728 down to 677
As a result, she got denied a car loan and was stuck paying higher interest rates.
Lesson: Never close your oldest or highest-limit credit cards unless you’re prepared for the impact on your score.
Final Word: Don’t Cancel Your Credit Power
Think twice before closing a card. In most cases, it’s smarter to:
• Keep it open ✅
• Use it occasionally ✅
• Pay in full ✅
Your future self and your credit score will thank you.
Want Help Fixing Past Mistakes?
At MSI Credit Solutions, we’ve helped thousands of people:
• Repair damage from closed accounts
• Remove errors from their credit report
• Build a strategy to hit 700+ scores fast
📈 Request your FREE credit consultation today, and protect your credit like a pro.
Request a Consultation with MSI
Disclaimer: Individual results may vary. Consult with financial professionals for personalized advice
