Consider the age of each account when determining how long you have had credit history. Consider the following example: Let's say that you have three credit card accounts. Card One is three-years old, Card Two has five years and Card Three is one. In this instance, your credit history is three years.
15 points
The length of your credit history can have a big impact on your credit score. Credit scoring models factor in how old your oldest account is when determining your score. Check out your credit score to see how old you oldest account is. This information could help you improve the credit score. There are several things you can do in order to increase your credit score.
128 points
By paying more than your minimum credit card payment and reducing your total credit card debt, you can improve your credit score. To avoid exceeding your credit limit, you should set it yourself. Lenders will be looking for evidence of credit management that has been consistent over time. Your credit history counts for approximately 128 points. It shows when your first accounts were opened and when you made the last payment.
Although you are not eligible for a loan or creditcard if you have a credit score below 128, there are still ways to improve your credit score. Although it can take several years to get your credit score up to a high standard, it is possible.
Age
Your credit history is one factor that can influence your score. Your score will generally be higher if you have more accounts than you have. Closing a credit card account can also damage your score. There are ways you can reduce the impact of closing your credit account.
The average age of your credit history is the number of years you have had the same type account. For example, if you have three credit cards, the average age is three years. If you have five or more cards, your credit score would be seven.
For a hard inquiry
You can manage your credit score by being diligent and monitoring it frequently. Many banks offer tools that can be used to check your credit score and credit reports for free. Experian offers access to your FICO(r), Score for free. Regular monitoring of your credit report will reduce the impact of difficult inquiries.
Lenders will ask you for a copy if your credit report is needed to approve you for a loan. This is called a "hard inquiry" and it will affect your credit score. After one year, however, these inquiries are no longer included in your credit score. These inquiries will also disappear after two years.
Average age for account
It is important to look at the average age of all your credit accounts when you are looking at your credit history. Longer credit histories will improve your credit score. A shorter history will lower it. There are many factors that determine how long your credit history is, including your age and demographics. Your credit score will increase if you keep your accounts current and open.
Having a long credit history will benefit you when applying for a loan or applying for a credit card. The average age of your credit history will decrease if you open new credit accounts. If you are unable to achieve your goals, it is best not to open new accounts.