Stop closing old credit cards just because you don't use them

I've seen three people in the last month post about closing cards they've had for 8-10 years because they got a new one with better rewards. That's a huge mistake. Your average age of accounts takes a hit and your total available credit drops. Check your FICO score before and after doing that, I bet you lose 20-30 points.

2 comments

2 Comments

the_kai7d ago

Yeah because nothing says "solid financial strategy" like ditching a decade of credit history just so your wallet is less cluttered. Honestly at this rate you'll be closing your oldest card because the plastic is slightly yellowed.

gibson.seth7d ago

Question whether losing 20-30 points is really that big of a deal in the long run. Your FICO score bounces back pretty quick if you keep paying your bills on time and don't have a ton of other credit issues. I've closed a couple old cards myself and honestly my score dipped like 10 points tops and was back up within a few months. The whole "average age of accounts" thing is overblown if you have a solid mix of other credit like a car loan or a mortgage. Plus, having a bunch of old cards sitting around just clogs up your wallet and makes it easier to accidentally forget one and miss a payment. Your mileage may vary but I think people get way too worked up over a temporary hit.