How Length of Credit History Affects Credit Score

Your credit history length plays a significant role in determining your credit score.

Let's break down what this means and why it matters for your financial health.

What is credit history length?

Credit history length is simply how long your credit accounts have been open. This includes:

• Credit cards

• Lines of credit

• Mortgages

• Car loans

• Any other credit accounts

This factor makes up about 15% of your credit score. While not the biggest component, it's still important.

If you're new to credit, don't worry. You can still build a good score by focusing on timely payments and keeping your credit utilization low.

Why lenders care about your credit history

Lenders look at your credit history length because it helps them predict how you'll handle credit in the future. A one-month history with perfect payments doesn't tell them much. But years of responsible credit use suggests you're likely to continue being reliable.

Think of it this way: would you trust someone you've known for years or someone you just met yesterday?

That said, length alone won't save a history of missed payments. A long but problematic credit history can still hurt your score.

Credit age vs. credit history length

When reviewing your credit, lenders consider two time-related factors:

1. Credit history length: How long each individual account has been open

2. Credit age: The average age of all your credit accounts combined

For example, if you have three credit cards opened 1, 3, and 5 years ago, your credit age would be 3 years ((1+3+5) ÷ 3 = 3).

Factors that impact your credit history length

Your Oldest Account

The age of your oldest credit account significantly influences your score. This is why financial experts recommend keeping your oldest credit cards open, even if you don't use them often.

Average Age of Accounts

The average age of all your accounts also matters. When you open new accounts, this average decreases temporarily.

Account Activity

Make occasional purchases on older cards to keep them active. Unused accounts might be closed by the issuer, which could shorten your credit history.

How your actions affect credit history length

Opening New Accounts

Getting a new credit card or loan will temporarily lower your average account age. While this might cause a small dip in your score, the effect is usually minor if you don't open multiple accounts at once.

Closing Old Accounts

Closing an old credit card can hurt your score in two ways:

• It reduces your average credit age

• It lowers your total available credit, which might increase your credit utilization ratio

What's considered a good credit age?

While there's no official benchmark, here are some general guidelines:

• 5+ years: Generally considered good

• 10+ years: Excellent, showing a long and established credit history

Having a mix of accounts with different ages is beneficial, with one or two older accounts anchoring your credit history.

Building a strong credit timeline

Your credit history length matters, but it shouldn't stop you from making smart financial moves. If you need a new credit card with better terms, go ahead and apply—just avoid opening multiple accounts at once.

Focus on maintaining your oldest accounts while building a diverse credit portfolio over time. Remember that payment history and credit utilization have an even bigger impact on your score than length of history.

The best approach is balance: maintain old accounts, add new ones strategically, and always pay on time. With patience and good habits, your credit history will grow stronger year by year, helping you access better financial opportunities down the road.