If you have an old credit card sitting in your wallet that you rarely use, you might be tempted to close it. After all, why keep something you don’t need?

But before you cancel that card — stop!

Closing old credit cards at the wrong time can hurt your credit score, especially if you’re planning to apply for a mortgage.

In this blog, I’ll share why keeping your old credit cards active can actually strengthen your financial profile and help you secure better mortgage options.

Why Your Old Credit Cards Are Important

Your credit history length plays a big role in determining your overall credit score. Lenders look at how long you’ve been responsibly managing credit — and your oldest credit card is a key part of that history.

The longer your credit history, the more confidence lenders have in your ability to handle debt.
Closing your oldest card can shorten this history and may weaken your score.

How Closing a Card Can Reduce Your Score

Many people don’t realize this, but closing a credit card can also affect your credit utilization ratio — one of the biggest factors in your credit score.

Here’s why:

• When you close a card, your available credit decreases

• But your balances stay the same

• This makes your utilization percentage go up

• A higher utilization ratio can drop your credit score quickly

This is especially important when preparing for a mortgage, as lenders closely examine your credit score to determine your eligibility and interest rates.