Canceling Old Credit Cards

Old Credit Cards – Cancel or Keep?

This question arises quite often. When you open a new credit card account, is it best to close your old credit card account(s) or leave it(them) active? The answer, of course, varies from person to person and depends on a variety of factors.

In order to come up with an answer, it is best to ask yourself a series of questions.
- Will I possibly need this card in the future?
- Should I keep the card for emergencies only?
- Does this card have a valuable rewards program that I don’t want to lose?
- Have I had this card long enough that I don’t want to lose the positive history associated with it?

In many cases, it can be wise to keep your old credit card accounts active and not close them right away. Closing old accounts can immediately reduce the length of your credit history and can also immediately reduce the ratio of credit-used-to-credit-available. Both of these factors are involved in the formulating an individual’s credit score.

Read Keep them or cancel them? for more information. In this section, you can also find more advice and tips about various topics relating to credit cards.

Make your next credit decision a knowledgeable one. Visit our knowledge center for more helpful resources and tools, and always consult a financial expert with specific and complex questions about your individual situation.

Posted in Credit Cards, Personal Finance

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