The age of each credit card is a key factor in determining the length of your credit history. As an example, suppose you have three credit accounts: Card One has three years of age, Card Two is five years, and Card Three has one year. In this instance, your credit history is three years.
15 points
Your credit score can be affected a lot by the length of credit history. Credit scoring models take into account how old your oldest credit card is in determining your score. Your credit report will reveal how old your oldest accounts are. This information will help you improve credit scores. Although the average credit score is 711 there are some things you can do that will help improve it.
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 going over your credit limit you should also establish it. Lenders will look for evidence of good credit management over a long period of time. The length of your credit history is worth about 128 points. It shows when you first opened your accounts and when you last made a payment on each one.
You can't get a loan nor a credit card if your credit score is less than 128. However, there are some ways to increase 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 can have a significant impact on your score. Your score will increase if you have more than one credit account. Your score can be affected by closing credit accounts. There are many ways to minimize the effects of closing a credit card.
Your credit history's age is the average number years you have held the same type accounts. If you have three credit card accounts, your average age would be three years. Your credit age would be seven if you have more than five credit cards.
Inquiry by hard copy
Being diligent and keeping track of your credit score are the best ways to manage it. Many banks offer tools that allow you to check your credit report and credit score for free. Experian, for example, offers free access to your FICO(r) Score. Monitoring your credit report regularly will help you minimize the impact of hard inquiries.
Lenders may request a copy of credit reports when you apply to for a loan. This is known as a difficult inquiry, and it can lower your credit score a little. After one year, these inquiries will no longer be added to your credit score. They will also vanish from your credit history after 2 years.
Average age for account
You should consider the average age for your accounts when looking at your credit record. A long history will increase your credit score, while a short history will decrease it. You age, demographics, and many other factors can impact how long your credit history lasts. Keeping your credit accounts open and current can increase your average age of credit history.
A long credit history is a benefit when you apply for a loan or a credit card. Open new credit accounts will reduce your average age. If they do not help you to reach your goals, you should be cautious about opening any new accounts.