Should you cancel old credit cards? Man, I’ve been there, staring at a pile of plastic on my kitchen counter in my tiny Chicago apartment, wondering if I should just shred ‘em and be done. The other day, I was sipping lukewarm coffee—my mug’s chipped, because of course it is—and flipping through my wallet, where I found, like, three cards I haven’t used since 2019. Seriously? I’m not alone, right? Those old cards, they just sit there, collecting dust and bad vibes, but closing them? That’s a whole saga, and I’ve got scars to prove it.
Here’s my deal: I’m no finance guru. I’m just a guy who’s made some dumb money moves and lived to tell the tale. So, let’s dive into this mess—my mess—and figure out if you should cancel those old credit cards or let them chill in your drawer like forgotten Pokémon cards.
Why I Thought Canceling Old Credit Cards Was a Genius Move
A couple years back, I was on this “minimalist” kick—y’know, Marie Kondo-ing my life, except instead of clothes, I was eyeing my credit cards. I had this one card from college, zero balance, but a $29 annual fee that annoyed me every year like a mosquito in my ear. I’m sitting in my living room, the radiator clanking like it’s auditioning for a horror movie, and I’m thinking, “Why am I paying for this thing I don’t use?” So, I called the bank, canceled it, and felt like a financial rockstar. Spoiler: I was not.
What I didn’t know—because, duh, I didn’t Google it—was that canceling that card was like kicking my credit score in the shins. According to Experian, closing old accounts can shorten your credit history and mess with your credit utilization ratio. That’s the percentage of your available credit you’re using, and it’s a big deal for your score. I learned this the hard way when my score dropped 30 points. Thirty! I checked it on my phone, sitting on my creaky couch, and nearly choked on my pretzels.
My Credit Score Took a Hit, and I’m Still Salty
Here’s the tea: that old card I canceled? It was one of my oldest accounts, and age matters in the credit game. Credit Karma says the length of your credit history is about 15% of your FICO score. Closing that card made my credit history look younger, like I was some rookie who just got their first card. Plus, my credit utilization spiked because I lost that card’s available credit. I was using the same amount but with less “room,” so it looked like I was maxing out. Ugh, math.
I remember checking my score on my laptop, the screen glare reflecting off my glasses, and just staring at the number like it betrayed me. I felt so dumb—like, why didn’t anyone tell me this? Well, they did, on every finance blog ever, but I was too busy “decluttering” to listen.
Should You Cancel Old Credit Cards? Here’s What I Learned
So, should you cancel old credit cards? Honestly, it depends, but I lean toward “probably not” after my fiasco. Here’s the breakdown, based on my own screw-ups and some late-night Googling in my dimly lit apartment, where the Wi-Fi cuts out every 20 minutes:
- Credit history length: Old cards are like fine wine—they make your credit look mature. Keep ‘em if they’re not costing you fees.
- Credit utilization: More available credit keeps your utilization low, which is good for your score. Closing cards shrinks that cushion.
- Annual fees: If the card’s charging you and you don’t use it, weigh the cost. My $29 fee wasn’t worth it, but maybe a $99 fee is if the card has perks.
- Temptation factor: If you’re like me and can’t resist swiping for dumb stuff (like that $50 artisanal candle I regret), maybe close it—but only after you’re sure.
When Canceling Old Credit Cards Might Actually Make Sense
Okay, I’m not saying never cancel. Sometimes, it’s legit. Like, if the card’s got a hefty annual fee and you’re not using the rewards, ditch it. I had another card with a $75 fee, and I wasn’t flying enough to justify the miles. I canceled it after opening a new card with a higher limit to keep my utilization in check. Smart, right? Took me way too long to figure that out.
Also, if you’re drowning in cards and can’t keep track—like me, forgetting which card I used for my gym membership, so I got hit with a late fee—maybe consolidate. NerdWallet suggests paying off the balance and keeping the account open if there’s no fee, but if it’s too much chaos, close it strategically.
My Embarrassing Late Fee Story
Speaking of chaos, let me tell you about the time I forgot about a card linked to an old subscription. I’m in my kitchen, chopping onions for tacos, when I get a call from a collections agency. Turns out, I had a $12.99 streaming service I forgot to cancel, racking up $100 in late fees on a card I hadn’t touched in years. The onion tears were real, but so was my shame. I paid it off, canceled the card, and learned to check my statements. Lesson? Keep tabs on your cards, even the old ones.
How I’m Handling Old Credit Cards Now
These days, I’m smarter—kinda. I keep my old cards open, especially the no-fee ones, and use them every few months for small stuff, like a coffee run or gas. It keeps them active, which Bankrate says prevents issuers from closing them for inactivity. I set reminders on my phone, which I check while sprawled on my couch, scrolling X for finance tips (follow @MoneyNerd for solid advice, btw).
If you’re wondering whether to cancel old credit cards, here’s my advice, straight from my messy desk in Chicago:
- Check the fees: No fee? Keep it. High fee? Do the math on the perks.
- Know your score: Use free tools like Credit Karma to see how closing a card might hit you.
- Use it occasionally: Buy a snack, pay it off. Keeps the card alive without drama.
- Plan ahead: If you must close, open a new card first to soften the blow.
Wrapping Up My Credit Card Rant
So, should you cancel old credit cards? I’m no expert, but my gut says keep ‘em unless they’re bleeding you dry or driving you nuts. My credit score’s still recovering from my “genius” minimalist phase, and I’m not making that mistake again. If you’re on the fence, check your score, crunch the numbers, and maybe don’t do what I did. Got old cards collecting dust? Tell me your stories on X—I’m @BrokeButTrying, and I’d love to commiserate.
