Why keeping old accounts open helps
The age of your credit accounts plays a real role in your credit score. Keeping older accounts open — even ones you rarely use — can help your score over time.
Key takeaways
- Closing old accounts can lower your credit score
- Older accounts boost your average credit age, which helps lenders
- Use old cards occasionally so issuers don't close them
- Ask for a no-fee version before closing a card with an annual fee
You might think closing an old credit card is a smart move. Maybe you never use it anymore. Maybe it feels like clutter. But closing that account could actually hurt your credit score.
Here is why that matters.
One part of your credit score looks at how long you have had credit. This is called your credit history length. It usually counts for about 15% of your FICO score. Lenders like to see that you have managed credit responsibly over a long period of time.
Your score looks at a few things related to age. It checks the age of your oldest account. It also checks the average age of all your accounts. The longer those numbers are, the better it can look to lenders.
When you close an old account, you shorten your credit history. If that account was your oldest one, you lose your longest track record. That can cause your score to drop.
Here is a simple example. Say you have three credit cards. One is 10 years old. One is 3 years old. One is 1 year old. Your average account age is about 4.7 years. If you close that 10-year-old card, your average drops to just 2 years. That is a big change.
So what should you do?
First, keep old accounts open if you can. Even if you rarely use them, they are helping your score just by existing.
Second, use old accounts every now and then. A small purchase every few months can keep the account active. Some card issuers close accounts that have no activity for a long time.
Third, pay off any balance on that old card. You want the account open, but you do not want to carry debt that costs you money in interest.
Fourth, check if the card has an annual fee. If it costs you money each year and you cannot afford that, it may make sense to call the issuer and ask for a no-fee version instead of closing it entirely.
Keeping old accounts open is one of the easier habits to build. You do not have to spend money. You just have to resist the urge to close accounts that feel unused or unnecessary.
Patience matters here. Credit history builds slowly. But every month that old account stays open is another month working in your favor.
Related FAQs
Common questions about this topic, answered simply.
Will closing an old credit card always hurt my score?
It depends on your situation, but it can hurt your score by reducing your average account age or eliminating your oldest account. The impact may be small or large depending on how many other accounts you have. In general, keeping old accounts open is the safer choice for your credit history.
What if my old card has an annual fee I can't afford?
Call the card issuer and ask if they can switch you to a no-annual-fee version of the same card. Many issuers will do this to keep your business. That way you keep the account history without paying a fee you cannot afford.
How often should I use an old card to keep it active?
A small purchase once every two to three months is usually enough to keep an account active. You could use it for something small like a coffee or a streaming subscription, then pay it off right away. Check your card issuer's policy since every lender is different.
Does credit history length really make a big difference?
It counts for about 15% of your FICO score, so it is not the biggest factor but it does matter. Over time, a longer history can help show lenders that you are reliable. Small habits like keeping old accounts open add up over the months and years.
I have a store credit card I never use. Should I keep it open?
If it has no annual fee, keeping it open is usually a smart move for your credit history. Just make a small purchase occasionally so the issuer does not close it due to inactivity. Make sure to pay it off in full so you avoid interest charges.
Can opening new accounts hurt my average account age?
Yes, opening a new account lowers your average account age because a brand-new account starts at zero. This is one reason not to open several new accounts at once. Space out applications and only open new credit when you truly need it.
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