“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board is made up of financial experts whose job it is to make sure that all of our content is fair and unbiased.
The advice in this article is offered by the team independent of any bank or credit card issuer. This article may contain from our partners, and terms may apply to offers linked or accessed through this page. as of posting date, but offers mentioned may have expired. Bankrate logo.
We at Bankrate want to take the mystery out of the credit card business so that everyone can understand it, no matter where they are in their journey. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to:
At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. We want to give readers information that is both correct and fair, and we have editorial standards in place to make sure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
Having multiple unused credit cards sitting in your wallet or tucked away in a drawer can seem like unnecessary clutter. However, closing those unused accounts could negatively impact your credit. Here are some things to consider before canceling an unused credit card.
Potential Downsides of Closing Accounts
1. Reduced available credit
The total credit limit across all your accounts is factored into your credit utilization ratio, which makes up 30% of your credit score. Closing an unused card lowers your total available credit, so your utilization ratio will rise as a result. This could cause your credit score to drop.
2. Shorter credit history
The length of your credit history accounts for 15% of your FICO® Score. When you close your oldest card it shortens the average age of your credit accounts. This also tends to lower your credit score.
3. Loss of positive payment history
Having an open and active card that you don’t use can still help your credit score. When you close it, those on-time payments are taken off your credit report, which lowers your good history.
When It Can Be OK to Close a Credit Card
Despite potential drawbacks. here are some situations where closing an unused credit card makes sense
-
The card has an annual fee you can no longer justify paying. If cancelling would help your budget, the credit impacts may be worth it.
-
It’s a newer account opened in the past few months. Eliminating a very young account would have a minor effect on your credit history’s length.
-
You struggle with temptation to overspend. Taking away more credit could help people keep up good spending habits.
-
There are no incentives to keep it open. If the account doesn’t offer rewards or other perks, there’s less reason to keep it.
Tips for Handling Unused Cards
Instead of closing unused credit cards, consider these alternatives:
-
Use the card occasionally for small purchases you can quickly pay off. This will keep the account active.
-
Set up a small recurring charge like a streaming subscription, and set up autopay from your bank to pay the bill every month.
-
Contact the issuer to see if you can downgrade to a card with no annual fee. Then you can keep the account without paying to maintain it.
-
If you won’t use the card, at least check account activity periodically for fraudulent charges. Report lost or stolen cards immediately.
The Bottom Line
It’s generally wise to keep old credit card accounts open, even if unused. But if the costs and risks of an unused card outweigh the credit-related benefits, cancellation may be the best option. Consider all factors carefully before closing any accounts.
When to cancel an unused credit card
Despite the potential benefits of keeping an unused credit card, sometimes it makes sense to close your account. You might be better off closing it if:
Things to do before deciding to cancel an unused credit card
If you’re still thinking about canceling your unused credit card, here are a few more things you should do to make sure you make the right choice.
Why you should CANCEL your old credit cards
FAQ
Does closing an unused credit card hurt your credit?
Your score may go down if you close old accounts, especially if you close the card you’ve had the longest. Accounts that have been closed will stay on your credit report for up to 10 years, but they won’t add to the age of your credit history.
Is it better to close a credit card or let it go inactive?
Keeping an unused credit card open can benefit your credit score – as long as you follow good financial habits. If an unused credit card tempts you to unnecessarily spend or has an annual fee, you may be better off canceling the account.
Is it better to cancel unused store credit cards or keep them?
There isn’t much reason to close the store cards, but there is also no real reason not to. Personally I would leave them open unless there’s an annual fee; if you don’t use them for a year or more they may close on their own and that’s OK.
Is it better to cancel a credit card or keep a zero balance?
When you cancel a card you lose access to that card’s credit limit, so your overall credit limit goes down. Unless you carry a zero balance on all your credit cards, this change leads to a higher credit utilization ratio which can negatively impact your credit score.May 2, 2025