Does Closing Unused Accounts Improve My Credit Score?
Published 11th of October 2012·Updated 21 April 2026
Reviewed by: Reviewed for accuracy April 2026
Closing unused accounts will not improve your credit score and can sometimes make it worse. Credit reference agencies reward a long, positive credit history, and closing accounts shortens that history. The main practical benefit of closing unused accounts is that it can increase the amount lenders are willing to lend you.
Short Summary
Your credit score is built from your history of borrowing and repaying. Closing an account that has no balance removes a piece of that positive history from your file without replacing it with anything better.
However, lenders also assess what you could theoretically borrow, not just what you currently owe. An open credit card with a £5,000 limit you never use still counts as £5,000 of available debt in some lenders' affordability calculations.
The decision to close accounts should be based on your borrowing plans, not on a belief that it will immediately boost your score. If you are planning a mortgage application, closing accounts you never use can help you qualify for a larger loan.
Why closing unused accounts rarely improves your credit score
Credit reference agencies including Experian, Equifax, and TransUnion use the age of your accounts as one of several factors in your score. Older accounts with a clean payment history are assets. Closing them removes that positive data from your active file.
Additionally, closing a credit card reduces your total available credit limit. If you still carry balances on other cards, this increases your credit utilisation ratio - the percentage of your available credit you are using. Experian recommends keeping your utilisation below 25 per cent. Reducing your available credit without reducing your balances pushes this ratio up, which can lower your score.
When does closing unused accounts actually help?
Closing accounts helps in specific circumstances. If a lender is calculating how much you can afford to borrow - for example, for a mortgage - they will consider all your open credit lines as potential debt. An unused credit card with a £3,000 limit might be counted as if you owe £3,000, reducing the mortgage amount they will offer.
Closing accounts with zero balances before a major credit application can therefore increase your borrowing capacity, even if it does not change your headline credit score.
| Scenario | Effect of closing unused account |
|---|---|
| Account has a balance | No benefit until the balance is cleared first |
| Account has no balance; you have many other open accounts | Minor negative effect on score |
| Account has no balance; you plan a large loan/mortgage | Can increase maximum borrowing capacity |
| Account is very old with long positive history | Closing may reduce average account age; avoid |
| Account is recently opened and unused | Closing has minimal effect |
Should you close accounts with balances?
You should pay off the balance before closing the account. Closing a credit card with an outstanding balance does not make the debt disappear; the account will still show on your credit file with the balance recorded. Clearing the debt first and then closing the account is the correct order.
Paying off balances also directly improves your credit score, regardless of whether you then close the account. According to Experian, reducing your utilisation rate is one of the fastest ways to improve your score.
What about old store cards and unused credit cards?
If an old store card or credit card has no balance and you have not used it for years, the practical risk is fraud - an account sitting open can be a target. Closing it for security reasons is sensible. Weigh this against the credit history benefit, particularly if the account is very old or represents a significant share of your total available credit.
If you do decide to close accounts, close the newest ones first. Older accounts contribute more to the length of your credit history, which is one of the factors credit reference agencies use in scoring.
FAQ
Will closing a credit card hurt my credit score?
It can, particularly if the card is old or carries a large credit limit relative to your other accounts. Closing a card reduces your available credit, which increases your utilisation rate if you carry balances elsewhere. It can also shorten your average account age. The effect is usually modest but worth considering before a major application.
Does closing a bank account affect my credit score?
Closing a standard current account generally has little effect on your credit score, as bank accounts are not credit products. However, if the account had an overdraft facility, closing it reduces your available credit slightly.
Should I close accounts before applying for a mortgage?
Closing accounts with no balance before a mortgage application can increase the maximum amount lenders are prepared to offer, because it reduces your theoretical available debt. However, do not close old accounts that carry a significant positive history; the benefit of showing responsible long-term credit management outweighs the small increase in available credit capacity.
How many credit accounts should I have?
There is no magic number. Two to four open accounts with clean payment histories, well-used but not maxed out, is broadly what credit reference agencies view favourably. Having too many open accounts with zero activity is not beneficial, but aggressively closing them is not the answer either.
Does cancelling a store card affect my credit score?
Yes, in the same way as closing any credit account. If the store card is old and has a long positive history, closing it removes that history. If it was opened recently and never used, the impact of closing it is minimal. Always clear any remaining balance first.