17 Best Ways to Rebuild Your Credit Score After a Financial Setback

10. Keep Old Accounts Open to Preserve Credit History

The length of your credit history contributes approximately 15% to your credit score calculation, making the age of your accounts an important factor in credit rebuilding. This component includes the age of your oldest account, the average age of all accounts, and how long specific accounts have been established. Many people make the mistake of closing old credit cards after paying them off, particularly if those cards were associated with financial difficulties. However, closing old accounts can actually harm your credit score by reducing your total available credit (increasing utilization ratios) and potentially lowering your average account age. Instead, keep old accounts open and active by making small purchases periodically and paying them off immediately. This strategy preserves your credit history length while maintaining the available credit that helps keep your utilization ratios low. If old accounts have annual fees that you prefer not to pay, contact the card issuer to request a product change to a no-fee version of the card rather than closing the account entirely. For accounts that have been inactive for extended periods, make small purchases every few months to prevent the issuer from closing them due to inactivity. Some credit experts recommend setting up small recurring charges, such as streaming services or utility bills, on old cards and then setting up automatic payments to ensure the accounts remain active without requiring ongoing attention. Be aware that some negative information, such as late payments or charge-offs, will remain on your credit report even if you keep the associated accounts open, but the positive aspects of payment history and available credit will continue to benefit your score. The key is balancing the benefits of keeping accounts open with your ability to manage them responsibly without accumulating unnecessary debt.