Here's What Happens When You Close Your Oldest Credit Card
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A lot of people try to simplify their wallet by canceling a card they never use. The oldest one is often the first to go.
But that move can backfire. Your oldest credit line plays a bigger role in your credit score than most people realize.
Your credit history gets shorter
The age of your accounts is a major factor in your score. Lenders want to see a long, stable track record.
When you close your oldest credit card, you shorten your credit history immediately. The account still appears on your report for up to 10 years, but it no longer grows with you.
That shorter timeline can make you look riskier on paper, especially if your other accounts are newer.
Your credit utilization can jump
This one surprises people.
Your utilization ratio measures how much of your available credit you use. Remove an old card with a large limit and your total available credit shrinks instantly.
Even if your spending stays the same, your utilization rate goes up. That often means a lower score. Some people see a noticeable dip within a billing cycle.
Your credit mix gets smaller
Scoring models reward variety. Credit cards. Auto loans. Mortgages.
If you only have a few revolving accounts and close one of them, your report becomes less balanced. It's not a big factor in most scores, but it can matter at the margins.
It can affect future approvals
Lenders look at the depth of your profile. A thinner, shorter history can make it harder to qualify for the best cards or the highest limits.
That doesn't mean you'll be denied, but it can shift you into a lower tier or reduce your welcome bonuses with certain issuers.
When it makes sense to keep the card open
If the card has no annual fee, keeping it open usually helps more than it hurts.
You preserve your credit history. You keep your utilization low. And you avoid the unintended score drop that comes from closing the oldest piece of your profile.
Even using it once or twice a year can keep the issuer from closing it on their own. No-annual-fee cards deliver serious value and deserve a spot in everyone's wallet. You can compare the best ones here.
When it makes sense to close it
There are exceptions.
If the card has a fee you no longer want to pay or if it ties to a lender you no longer want a relationship with, closing it can be worth the short-term hit.
If you go this route, try to reduce balances on your other cards for a month or two. Lower utilization can soften the impact.
Your score can recover
Most people see their score bounce back within a few months as long as they make on-time payments and keep utilization low. Credit scores are designed to respond to patterns, not single actions.
Before you close anything, review which cards actually provide the most value for you.
If your goal is to simplify and still get strong rewards, one of these cash back cards can pick up the slack without adding complexity.
Check out some of the best cash back credit cards available now.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.