Picture this: You’ve had your first credit card since you were 18, and now you’re 30. You’re thinking, “Why not cancel this old, unused card?” It seems harmless, right? Wrong! Canceling your oldest credit card can actually hurt your credit score. Here’s why: credit scores love credit history. The longer you’ve had a credit account, the better it looks to lenders. If you cancel that oldest card, you shorten your credit history. Plus, it can increase your credit utilization ratio (how much you owe compared to your credit limit). That’s like suddenly turning your 100-piece puzzle into a 50-piece puzzle—things just don’t fit right anymore! So, keep that old card around—even if it’s collecting dust. It helps you in the long run by boosting your credit score and giving you a better shot at getting great loans or lower interest rates. Who knew that old credit card could be your secret weapon?
Leave a Reply