Does Closing Old Credit Accounts Hurt Your Credit Score?

30th Sep 2025

Many people consider closing old credit accounts once they’ve cleared the balance. While this may feel like a positive step, it can have an impact on your credit score. Old accounts are more than just unused credit lines—they play a role in your credit history and overall financial profile.

How Old Accounts Contribute to Your Credit Score

Your credit score is influenced by a variety of factors, including:

• Credit history length – Older accounts help demonstrate long-term financial stability.

• Credit utilisation ratio – Keeping unused accounts open increases your available credit, lowering utilisation.

• Credit mix – Lenders like to see a variety of responsibly managed accounts, including loans and credit cards.

When you close an old account, you may reduce the average age of your accounts and raise your utilisation ratio, which could negatively affect your score.

When Closing Old Accounts May Hurt You

Closing old credit accounts can:

• Shorten your overall credit history.

• Increase your credit utilisation if you carry balances elsewhere.

• Reduce the total number of accounts in your profile, affecting your credit mix.

For example, if you close a credit card with a £5,000 limit, your overall available credit drops, which may increase your utilisation percentage and lower your score.

Situations Where Closing Accounts Makes Sense

While there are potential downsides, sometimes closing an old account is the right move. You might consider it if:

• The account carries high annual fees you no longer want to pay.

• You’re struggling to manage multiple accounts responsibly.

• You no longer need the account for your financial strategy.

In such cases, it’s best to weigh the short-term impact on your score against the long-term benefits of simplifying your finances.

Tips for Managing Old Accounts Wisely

• Keep accounts open if they don’t cost you money and can help your score.

• Use older accounts occasionally to keep them active.

• If you must close an account, do so strategically—avoid closing your oldest account or one with a large credit limit.

• Monitor your credit report regularly to see how changes affect your score.

FAQs

Does closing an old account always lower your credit score?
Not always. It depends on factors like your overall utilisation and credit history length.

Should I keep an old credit card I never use?
If it has no fees and helps your utilisation ratio, keeping it open is often beneficial.

How long does a closed account stay on my credit report?
Closed accounts usually remain on your credit report for six years in the UK.

Is it better to close newer accounts instead of old ones?
Yes. Closing a newer account has less impact on your credit history than closing your oldest one.