It seems counterintuitive, but sometimes the smartest financial move is to keep a credit card instead of canceling it. Other times it’s not. Here’s how to know the difference.

Every credit card and loan in your name is part of your credit record, and calculations based on that mix of accounts is what drives your credit score. Your score is obviously important whenever you apply for additional credit, but a good score can also help you lower your insurance premiums, land a job, or score an apartment.

If you’re no longer using a card, or you just happily paid it off, it makes sense to want to get rid of it. And if you’re worried you’ll succumb to the temptation of using it again and racking up new debt, closing the account may indeed be wise.

But sometimes, canceling a card can hurt your credit. One way this happens is when it lowers our average age of credit. Lenders prefer borrowers with long credit histories, so if you cancel a card you’ve held longer than your other cards, you’ll be erasing one of your longest histories, in turn reducing your score.

The other downside to canceling a card is that it lowers your credit utilization rate, or the percentage of your available credit that you’re using. Closing a card removes that account’s credit limit from the equation, which raises credit utilization and harms your score.

If you decide against canceling, it’s okay to store the card away or even cut it up, though you may need to make a transaction every year or two to keep the account active. You can also call the card company to request moving to a different card they offer, such as one with no annual fee or rewards you find more appealing.