Question 1

How does length of credit history impact your credit?

Accepted Answer

A long positive credit history typically has a positive impact on your credit score. Lenders may view a long credit history as a sign that you're an experienced borrower who knows how to manage credit card debt responsibly, as long as you've consistently stayed on top of payments and kept your balances low. The impact that your credit age has on your score depends on the credit scoring model. VantageScore combines the length of your credit history with the variety of credit types you have into a single "highly influential" factor. On the other hand, the length of credit history alone accounts for 15% of your FICO Credit Score. While it might not be the most significant factor in determining your credit score, changes to the length of your credit history may have a noticeable effect. That's why you may see your credit score creep up slowly as time goes on and your accounts age, even if your credit habits don't change.

Question 2

Does opening and closing credit cards affect your length of credit history?

Accepted Answer

When you open a new credit card or close an old account, the average age of your credit cards goes down. However, the impact that the change in your length of credit history has on your credit score may depend on other factors.

Question 3

What's a good length of credit history?

Accepted Answer

There's no ideal credit history length that guarantees a strong credit score. However, in general, the more experience you have managing credit responsibly, the better. But that doesn't mean you need to have a long credit history to establish a good credit score. Other factors such as your payment history and credit usage may have a more meaningful impact. By consistently practicing responsible credit habits, like making timely payments each month, you may gradually build a good credit score while increasing the length of your credit history.

What's Length of Credit History?

Key Takeaways

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