Should You Never Close Your Oldest Credit Card?

Oh man, this is one of those credit myths that just won't die. "Never close your oldest card or your score will tank!" I used to stress about this constantly until I actually looked at what happens in real life. Turns out, like most credit advice, it's way more complicated than the simple rule suggests.

Why people think this matters

The idea comes from worrying about your credit age - specifically your Average Age of Accounts and Age of Oldest Revolving Account. People think if you close that old card, your credit age immediately gets younger and your score drops.

But here's the thing: when you close a card in good standing, it doesn't just vanish from your credit report. It sits there for up to 10 years, still counting toward your credit age the whole time. So closing it today doesn't hurt your age metrics at all.

Then people say, "Yeah, but what about 10 years from now when it finally falls off?" Fair question. Let me tell you about someone who actually lived through this.

What really happens - a real example

A credit expert shared his experience, and it's pretty eye-opening:

He had his first credit card for 14 years, then closed it and got a second card. Fast forward 10 years, and that original card finally dropped off his credit report. His Age of Oldest Revolving Account went from 24 years down to just 10 years - that's a massive 14-year drop.

His score change? Zero. Nothing. Nada.

If a 14-year drop in credit age doesn't move the needle, what are the rest of us worried about?

Let me break down the math

Say you've got these cards:

Card A (your oldest): 15 years old
Card B: 5 years old
Card C: 4 years old
Card D: 1 year old

Your average age right now is 6.25 years.

If you close Card A today, in 10 years when it falls off, your other cards will be:

Card B: 15 years old
Card C: 14 years old
Card D: 11 years old

Average age at that point: 13.3 years.

Even if you open a brand new card right when the old one falls off, your average age drops to 10 years. But here's the kicker - FICO basically stops caring about age improvements once you hit around 7.5 years. So whether your average age is 10 years or 13 years, you're getting the same scoring benefit.

When you should absolutely close that old card

Annual fees: If your old card charges an annual fee and you're not using the benefits, close it. Paying $95+ a year to keep a card you don't use is just throwing money away for maybe zero credit benefit.

Subprime/predatory cards: Those "rebuilding credit" cards are often complete rip-offs. We're talking monthly maintenance fees ($6-12/month), processing fees, overlimit fees, and interest rates that would make a loan shark blush. Some even charge you interest on balances you're not carrying! Close these toxic products as soon as you qualify for something from a real bank. Your wallet will thank you way more than your credit score will punish you.

Inactive cards with fees: Even if you're not using the card, you can still get hit with inactivity fees, account maintenance fees, or surprise interest charges on old promotional balances you forgot about. If you're not actively managing a card and it has any potential for fees, close it before it costs you money.

You've got plenty of other credit: If you have several other cards with good limits and you manage your balances well, losing one credit line isn't going to hurt your utilization ratio in any meaningful way.

The utilization thing

Yeah, closing a card reduces your total available credit, which could increase your utilization percentage. But this only matters if:

You actually carry balances
The change pushes you over a scoring threshold
You can't just pay down balances to fix it

Utilization updates monthly anyway, so even if closing a card temporarily hurts your utilization, you can usually fix it quickly by paying down some debt.

Stop overthinking it

Look, I get why this myth persists. Credit scoring feels mysterious, and keeping old accounts open seems like the "safe" play. But the data just doesn't support the paranoia.

Focus on the stuff that actually matters: pay your bills on time, keep your balances reasonable, and don't apply for credit you don't need. If your oldest card is costing you money in fees or it's from some predatory lender, close it and move on with your life.

Your credit score isn't going to collapse because you closed a card. And if it does dip slightly, it'll probably recover faster than you think.