‘Should I close my first credit card?’

In this weekly column, I’ll help you sort out financial gray areas—from prenups to inheritances and more. Submit your money matter here.

I opened my first credit card when I was 18, and my mom cosigned with me. I’m 27 now and still have that card, with its cool $500 limit, but I never use it. My partner and I have other cards with higher limits that we pay in full, and that offer some awesome rewards. Does it make sense to close my first credit card, even though it is the credit card I have had the longest? I’m worried about my credit score taking a significant dip.—Credit Confused

Dear Credit,

Conventional wisdom tells us that you should never close your oldest credit card account. But as Money Scoop and James Bond like to say, never say never. (Read this one to the end, though.)

It’s true that closing an old account will drop your credit scores. But if you have an established credit history aside from ye olde card, the impact might not be as bad as you think.

Both major credit score models—FICO and VantageScore—put significantly more weight on your payment history and credit utilization. For an excellent credit score, focus on paying off your cards on time and and keeping your balances below 30% of your total credit limit. Your higher-limit cards that you pay off in full can buoy your credit scores.

Still, closing a card can indirectly impact those key factors. When you kick an unused card to the curb, you risk dinging your credit utilization—the percentage of your total credit limit that you currently owe.

I have to ask, why do you want to close the account? You say there’s no balance on the card. Sure, it’s dormant, but it’s not affecting your or your mom’s credit scores negatively. Does it have an annual fee that you’re tired of paying? Or is your wallet a no-plastic zone?

In your specific situation, it’s unlikely your OG card with a $500 limit will have a significant impact on your credit utilization. But unless you have a better reason to close it than, “The card’s color doesn’t match the inside of my wallet,” keep the card open, because it can’t hurt.

Try downloading the CreditWise from Capital One app (#notsponsored, just a fan). For free, and with no impact on your credit score, it’ll estimate your VantageScore based on your TransUnion credit report. You can use the simulator to take an educated guess at what happens to your credit score after closing your oldest credit card.

Don't close cards, or doors, for no reason.

—Ryan