Here's What Happens if You Never Cancel a Credit Card
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Personally, I'm only a few years into my credit card journey. But a little research has clued me in on what can happen if I hold onto a credit card for decades -- some of it good, some of it not so much.
Here's what to know about keeping a credit card in the long, long, long run -- and how to do it the right way.
Your credit score can improve
Keeping a card open for years on end can be a big boost to your credit score. That's because "length of credit history" makes up for 15% of your FICO® Score -- so the longer you keep cards open, the better off you'll be.
People with perfect credit scores often have at least a couple accounts that are super old. If your old card doesn't have an annual fee, keeping it open is a smart move. Just let that long history roll on over time, and make a small purchase on it every now and then to keep it going.
You may not have a use for the card anymore
Like anything else, financial needs can change over time. Cars, mortgages, businesses, kids -- all of it changes how you live and how you spend, which means a card you opened 10 or 15 years ago might not offer much value anymore.
If your credit is much better, you're probably qualified for a card with better perks, a higher credit limit, or stronger rewards. If you make much more money than before, you probably have more use for a luxury travel card with a lot of bells and whistles.
No matter your situation, make sure you assess all your options before you open a new card -- or cancel an old one.
Want to save on your next big trip today? See our list of the best travel cards available today to find the one for you.
The issuer can change the card
When a credit card's been around for years and years, the issuer might make changes -- some small, others potentially drastic.
Issuers will also retire older cards and replace them with newer versions. This usually doesn't hurt your credit history, the new card might have different benefits or fees. Keep all this in mind when you're assessing your card lineup.
If your card changes, make sure to check the new terms right away. Throwing a replacement card in a drawer can mean missing out on important updates.
Should you close your old credit card?
Even if you've got great memories with a card , closing it can sometimes be the right choice. If you're paying an annual fee that you can no longer justify, that'll always be the biggest reason to give a card the axe.
If you do decide to close a card, try to do it when your credit score is strong and you have plenty of other available credit. That'll help mitigate the drop in your credit score.
Otherwise, if you can still justify a card's annual fee, consider keeping it open -- not just for old times' sake, but because it can mean a real, tangible boost to your credit score.
Want to see what a great credit score can get you? See our list of the best credit cards available today.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.