Old Credit Card: When to Keep It, Cancel It, or Use It Again

If you’ve got a credit card sitting in a drawer that you barely remember using, you’re not alone. Many of us end up with old cards after a promotion ends, a balance is paid off, or a new card replaces the old one. The big question is what to do with that piece of plastic. Toss it, keep it, or find a new purpose? The answer depends on a few simple factors, and getting it right can save you from surprise fees and even help your credit score.

Why an Old Card Might Still Matter

First, look at the card’s impact on your credit history. Credit bureaus track how long each account has been open, and a longer history usually boosts your score. If the card is over five years old and has a good payment record, keeping it open can be a free credit‑score boost. On the other hand, if the card carries an annual fee, a high interest rate, or hidden charges, those costs can outweigh the credit‑history benefit.

Next, check the card’s terms. Some cards automatically downgrade to a no‑fee version after the intro period ends. If that’s the case, you can stay active without paying extra. Also, see if the card still reports activity to the major bureaus. A card that’s been dormant for years but still reports can still count as a positive factor.

Smart Ways to Deal With an Old Card

Here are practical steps you can take, depending on what you find:

1. Keep it open and use it sparingly. Put a small recurring charge on it—like a monthly Netflix subscription or a $1 test transaction. Pay it off in full each month. This shows activity without piling up debt.

2. Downgrade to a free version. Call the issuer and ask to switch to a no‑annual‑fee version. You keep the account age and credit line while cutting the fee.

3: Close it the right way. If the card has a high fee or you simply don’t want it, pay off any balance first, then request a written confirmation that the account is closed at a zero balance. Keep the confirmation for your records, and check your credit report after a month to make sure the status shows “closed by consumer.”

4. Repurpose for low‑risk use. Some people keep an old card as a backup for emergencies, or to use for online subscriptions where they want a separate number. Just remember to monitor the statement for any stray charges.

5. Freeze the card if you’re unsure. Many issuers let you freeze a card in the app. It won’t affect your credit score, and you can reactivate it later if you change your mind.

Finally, always watch for any unexpected fees. Even if you think a card is free, issuers sometimes add maintenance fees after a period of inactivity. A quick monthly glance at your email alerts or online dashboard can catch those before they add up.

In short, an old credit card isn’t automatically junk. Evaluate its age, fees, and reporting status, then decide whether to keep it active, downgrade it, or close it cleanly. Making the right call can protect your credit score and keep your wallet happy.