Your credit history isn’t just about how long you’ve had an account—it’s your track record with lenders. A short history can make it harder to qualify for things like a mortgage, car loan, or premium credit card, even if you’re financially responsible.
In this article, you’ll learn how the length of your credit history is calculated, how it affects your credit score, and what you can do to build a stronger credit profile over time.
Key Takeaways
- Length of credit history looks at how long you’ve had credit, based on your oldest account, newest account, and the average age of all accounts.
- A longer history generally leads to better credit scores. Closing accounts can hurt your score by shortening your history or raising your credit utilization.
- You can build credit age by keeping accounts open, becoming an authorized user, using different types of credit, or starting with a secured card or credit builder loan.
What is length of credit history?
Your length of credit history is how long you’ve had credit accounts. It tracks when you first opened a credit line and how long you’ve managed different types of accounts. Lenders use this timeline to decide how experienced and trustworthy you are with debt.
How is length of credit history calculated?
Credit scoring models use three main data points:
- Oldest account – The first credit account you opened
- Newest account – The most recent account you added
- Average age – The total age of all accounts divided by the number of accounts
Together, these give lenders a sense of how long you’ve been managing credit.
How Length of Credit History Affects Your Credit Score
Both FICO and VantageScore include length of credit history as a key scoring factor. They look at how long your accounts have been open, how recently you’ve used them, and the average age of all your accounts.
A longer history generally helps your credit score. It shows you’ve had time to make on-time payments, keep balances low, and manage different types of credit—like credit cards, car loans, or mortgages—without issues.
What is a good length of credit history?
There’s no hard rule, but the longer, the better. If your oldest account is at least 7 to 10 years old, that’s a solid mark in your favor. However, even those with shorter credit histories can still achieve good credit scores by maintaining a strong payment history, low credit utilization ratio, and a diverse credit mix.
How much credit history do you need?
To generate a credit score, FICO needs at least six months of credit history. VantageScore can produce a score with just one month. But if you’re applying for a major loan, a longer history makes you a lower-risk borrower in the eyes of most lenders.
What happens when you close a credit account?
Closing a credit account might seem harmless, especially if you’re not using it. But depending on the account’s age and balance, it can affect your credit score in more ways than you might expect.
Closing an Account Can Shorten Your History
When you close an account, it eventually drops off your credit report. If it’s one of your oldest accounts, your average credit age could shrink, which may bring down your credit score.
Why It Affects Your Credit Score
Closing a credit card also lowers your total available credit. That can increase your credit utilization ratio—the percentage of credit you’re using—and hurt your score, especially if you carry balances on other cards.
To minimize the negative effects of closing a credit card, consider paying down balances on other cards or asking for a credit limit increase on your remaining cards. Alternatively, you can keep the card open and use it for small purchases to maintain an active account.
See also: How to Remove a Closed Account From Your Credit Report
How to Improve Your Length of Credit History
There are several strategies to help build and maintain a longer credit history:
- Keep accounts open : Old accounts help your credit age. Keep them active with occasional small charges.
- Become an authorized user: If you have a family member or close friend with a strong credit history, ask if they would be willing to add you as an authorized user on one of their credit card accounts. This can help you establish or strengthen your credit history, as the primary account holder’s positive credit behavior will be reflected on your credit report.
- Consider a credit builder loan: A credit builder loan is a type of installment loan designed to help individuals build credit. These loans are usually offered by financial institutions like credit unions and community banks. By making on-time payments toward a credit builder loan, you can establish a positive payment history and build your credit over time.
- Secured credit cards: Apply for a secured credit card, which requires a security deposit that serves as your credit limit. By using the secured card responsibly and making your payments on-time, you can establish or improve your credit over time. After demonstrating consistent positive credit behavior, you may be able to upgrade to an unsecured credit card and have your deposit refunded.
- Monitor your credit report: Obtain a free credit report from each of the major credit bureaus annually to ensure your credit reports are accurate and up-to-date. If you notice any errors or discrepancies, dispute them promptly.
What other factors affect your credit scores?
Length of credit history matters, but it’s only one part of your credit score. Both FICO and VantageScore also consider these other key factors when evaluating your creditworthiness:
- Payment history: This is the most important factor. One missed payment can drop your score significantly. Consistently paying on time is the best way to build and protect your credit.
- Credit utilization: This measures how much of your available credit you’re using. High credit utilization can hurt your credit score, even if you’re making payments. Try to keep it as low as possible.
- Credit mix: Using both revolving accounts like credit cards and installment loans like auto loans or student loans helps show you can handle different types of debt.
- New credit activity: Applying for multiple credit accounts in a short time creates hard inquiries, which can lower your score temporarily. Too many new accounts at once may also signal risk to lenders.
- Derogatory marks: Collection accounts, bankruptcies, and public records can do serious damage. These stay on your credit report for years and drag your score down until they’re resolved or removed.
Bottom Line
The length of your credit history has a direct impact on your credit score. The longer you’ve managed credit—and managed it well—the more trust you build with lenders. It signals experience, stability, and lower risk.
To keep your credit age working in your favor, avoid closing old accounts unless necessary. Start building history early, use credit responsibly, and check your reports regularly to make sure everything is accurate. Over time, those habits can lead to better credit and better financial opportunities.
