Here's What Happens When You Keep a Credit Card Open for Over 10 Years

Have you ever been in a long-term relationship with a credit card? While I recently closed my oldest active credit card, I have another account that's been open for nearly as long, and I intend to keep it that way. The overall net effect of keeping a credit card account open for a decade or longer is positive, but a lot can change in that period -- for both you and the credit card. Here's what you should consider if you too want a long and fulfilling relationship with a credit card.

It could improve your credit score

Put simply, keeping an old account open and in good standing is good for your credit score. Your length of credit history matters -- in fact, it makes up 15% of your FICO® Score. When you apply for new credit, a lender will pull your credit report, and having a longer credit history is preferred. After all, if someone is going to loan you money (be it in the form of a credit card, personal loan, or even something major like a mortgage), they want to be assured you'll pay them back. If you've kept a credit card account open for a long time and also made your payments on time, that speaks well of you as a borrower.

Consequently, think long and hard before you close that old credit card. If it's not costing you any money (say, in the form of an annual fee), why not keep it open? You'll likely need to use it every so often to keep the account active (and to keep the issuer from lowering your credit limit), but that doesn't have to be a hardship. You might consider putting a regular monthly charge (perhaps a streaming service?) on the card and setting up autopay, so you can effortlessly keep it active and also paid off.

You could outgrow the card

Your life could change quite a bit in the space of 10 years, so it stands to reason that the credit card that was a perfect fit for your wallet a decade ago might not be anymore. For example, if your credit score has grown by leaps and bounds since you got the old card, you might now be able to qualify for a credit card that offers better perks and a higher credit limit. While you were once too broke to do much traveling, maybe now you're in a better position to take frequent trips and would rather have a travel credit card that earns points toward the cost of future flights, hotel stays, and other travel expenses.

You can certainly apply for a new card that comes with more bells and whistles, and keep your old card active. According to research by The Ascent, 50% of Americans have at least two credit cards. Even if you're not using it for everyday spending now that your financial picture has changed, that credit score boost is still worth hanging onto.

The issuer might change the card

But what if it isn't you who's changed, but the credit card itself? Over time, credit card issuers introduce new products and retire old ones. So if you keep a credit card for long enough, you may get a letter in the mail from the issuer announcing that your old card is defunct, and your account has transitioned to a new card altogether.

I've had this happen with old credit cards (both the one I canceled and the one that's still active), and it hasn't really had an impact on me. It is important to keep tabs on all your credit card accounts, however, so you know if a change is happening. The last thing you want is to miss a new card that's been mailed to you -- don't fall victim to fraud by letting a scammer steal a credit card out of your mailbox.

Here's when it might not pay to keep an old card active

I've probably convinced you that keeping an old credit card is a good idea, but there is one instance in which you might want to close that golden oldie. The reason I closed my oldest credit card earlier this year was because it had an annual fee, and I wasn't using the card. I have a few other cards with annual fees, but they're loaded with benefits and I get more than enough value from the cards to justify the fees.

If you've got an old credit card with an annual fee that doesn't benefit you, then you could consider closing it. However, I recommend waiting to do so until your credit score is in good shape and you have a high enough credit limit across other accounts to avoid dinging your credit utilization ratio in the process.