For me, bad stuff goes in its own box unless I need it.
Once it builds up I figure out what to do with it. Yard sale, Ebay, giving it away.
A lot of my collection back in the day came from small lots of "bad" stuff. Those obsessed with having stuff all the same shouldn't look. There might be a card with a hole and loads of creases next to one that's really nice.
I upgrade by chance. When I get some "new" cards I check off the spreadsheet, then compare the extras to what I have if the new ones are nicer, They get swapped in.
Reusing supplies depends on what I have on hand. If I'm out of toploaders, I might just reuse a pretty bad one. (Or if I've misplaced them) If the seller used what looks like a brand new one and there's no tape or anything I reuse those for sure.
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