Consider the age of each account when determining how long you have had credit history. In an example, let's say you have three credit cards: Card One is three years old, Card Two is five years old, and Card Three is one year old. In this case, your credit history age is three years.
15 points
Your credit score can be affected a lot by the length of credit history. Credit scoring models include the age of your oldest account when calculating your score. Check your credit report to find out the age of your oldest account. This information can help you improve your credit score. However, the average credit score in America is 711; there are many things you could do to improve your score.
128 points
Credit score can be improved by making more than the minimum payments on your credit cards, and by decreasing your total credit card balance. To avoid exceeding your credit limit, you should set it yourself. Lenders are looking for evidence that your credit management has been good over a prolonged period. The length of credit history is worth around 128 points. It shows the date you opened each account and the last time you made a 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. It can take several years before your credit score reaches a high level but it is possible.
Age
Your score will be affected by your credit history. 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 age of your credit history is calculated as the average number of years that you have had the same type of accounts. If you have three credit card accounts, your average age would be three years. If you have five credit cards or more, your credit age will be seven years.
Hard inquiry
You can manage your credit score by being diligent and monitoring it frequently. Many banks offer free tools to help you check your credit score. Experian provides free access to your FICO (r) Score. Hard inquiries can be minimized by regularly monitoring your credit report.
Lenders may request a copy of credit reports when you apply to for a loan. This is called a hard inquiry and will reduce your credit score by a few percentage points. However, these inquiries will stop being calculated in your credit score after a year. They will also vanish from your credit history after 2 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. A long history will increase your credit score, while a short history will decrease it. There are many factors that determine how long your credit history is, including your age and demographics. You can improve your credit score by keeping your credit accounts open.
If you are applying for a loan and/or a credit card, a long credit record will be of benefit. Your credit history will be less old if you open new accounts. If you are unable to achieve your goals, it is best not to open new accounts.