What To Do With Old or Expired Credit Cards
If you have an expired or canceled credit card, the best way to get rid of it depends on the card type. And if you’re still debating whether to close your old card, the best course of action depends on your credit history and how you’ve used the card.
- Plastic credit cards can be cut up for disposal, but metal ones should be mailed back to the issuer.
- Closing credit card accounts can negatively impact your credit score.
- If you have a card you’re no longer using, consider alternatives to closing the account, like asking the issuer to switch to a different card.
What to do with old or expired credit cards
Here’s what to do when you have a card that’s inactive, whether it’s expired or left over from a closed account:
Cut up plastic credit cards
If you have a plastic credit card, use a pair of scissors or cross-cut shredder to cut the card into much smaller pieces. Be sure to cut through any magnetic strips and chips, as well as any identifying information, such as your name or card number.
Once that’s done, throw the card remnants in the trash instead of the recycling bin to reduce the risk of fraud. You may even want to consider putting the pieces in a few separate trash bags to make it that much harder for anyone to reconstruct your personal data.
Send metal cards back to the issuer
Since metal credit cards are made of sturdier material, they’re often more difficult to destroy, making it harder to dispose of them at home. Fortunately, most credit card companies offer free programs that allow you to return your card to them for disposal.
Call the number on the back of your card to get instructions on how to start the process.
Contact expired credit card hobbyists
If you have a particularly old or rare credit card sitting around in your wallet, you may be able to trade it in for some cash.
The American Credit Card Collectors Society has an inquiry form you can submit for help determining if your card may be of value to the group’s members. Not every credit card is collectible. Older and harder-to-find cards are generally worth the most money.
If you’re considering selling an old card, check to make sure you don’t have an active version of that same card in your wallet, and check with your issuer before selling a recently-expired or canceled card that has a chip or magstripe.
An expired debit card should be disposed of the same way as an expired credit card. Follow the steps above to make sure you’re doing it safely.
What to do with credit cards you’re not using anymore
If you have active credit cards that you’re not using anymore, here are the things you should consider doing instead of (or before) cutting them up.
Request a downgrade
If a steep annual fee is making you think about canceling your credit card, consider asking your credit card issuer for a downgrade instead. Many issuers offer similar cards that don’t charge an annual fee, and you may be able to switch to one of those.
Upgrade to a premium or unsecured card
On the other hand, if you currently have a secured credit card or a card with limited rewards and you’ve worked to build your credit, you may be able to ask your credit card issuer for an upgrade after you’ve had the card for a while.
Some issuers will upgrade secured cards and send you new credit card offers automatically, but if that hasn’t happened in your case, it never hurts to ask. Just make sure you can handle the interest and fees associated with your new card, as those can sometimes outweigh the value of any rewards you may earn.
Continue to use the card for small purchases
Closing cards can impact your credit score (more on that below), so before you cut up your card, make sure it’s truly necessary. If you don’t need to close the account, consider keeping it open and using it for small purchases at least once a month. Recurring payments, like subscription services, work especially well for this.
Taking this route will ensure the card stays active with information going to the three credit bureaus. That said, remember to pay off the balance each month to avoid accruing debt and having late payments logged on your credit report.
Close the account — after considering the impact on your credit score
If you need to close your credit account, be aware that it will likely impact your credit score in two ways:
- Length of credit history: The average length of your credit history makes up 15% of your overall FICO score. If you close an older credit card, that could bring down the average age of your accounts and cause your score to drop.
- Credit utilization ratio: Your credit utilization ratio, also known as the amount of credit you’ve used versus the total amount of credit available to you, makes up another 30% of your FICO score. When you close a card, especially one with a higher limit, it can increase this ratio and negatively impact your score.
Despite these effects, there are still some instances when it could make sense to cancel a credit card. For example, you may be instructed to do so as part of a credit counseling program, or you may want to remove the temptation to use the card and run up more debt.
When you need to close a credit account, it’s a good idea to call your credit card issuer and have them walk you through the process.
Tracking your credit score can help you build credit and spot issues quickly. You can get your score for free with LendingTree Spring — and get personalized insights for improvement delivered straight to your inbox.
5 things to do before closing a credit card
If you’ve decided that closing a credit card is the right move for you, take these five steps:
- Pay off the account in full: If you have a balance on the card, it’s in your best interest to pay it in full before closing the account. If you can’t pay it in full, consider opening a balance transfer credit card so you can make payments against the debt on a new account.
- Disable autopay: Make sure to stop any scheduled payments to the account so the transactions won’t continue.
- Redeem any rewards or miles: If you have a rewards or travel card, do your best to use up what you’ve earned.
- Inform the issuer: The best way to close a credit account is to call the issuer and have them do it for you.
- Check your credit score: It’s a good idea to check your credit score both before and after closing your credit card so you can monitor the impact to your credit and factor that into financial decisions. If your credit score drops, it may be worth giving it time to recover before opening new accounts.
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