What is a Good Length of Credit History?

What is a Good Length of Credit History?

by | Mar 17, 2023

Have you ever wondered how long your credit history should be? Is there an ideal length? Does the length of your credit history affect your credit scores? This blog explains what your credit history is and how it affects your credit scores.

What is Credit History?

Your credit history is a huge component of your credit report. Your credit history helps calculate your credit scores. Your credit history is used to help determine if you’re a good borrower by lenders, a good candidate by employers where applicable and a good tenant by landlords.

What is a Good Credit History Length?

The length of your credit history refers to how long your oldest credit account has been opened. It is the age of your credit history.

The longer your credit account has been opened, the better your credit scores can be. Although there is no direct answer to how long your credit history must be, seven years can be considered a good length.

This is because most negative information, such as bankruptcy, on your credit report is removed after seven years.

How Does Credit History Length Affect Credit Scores?

According to Fair Isaac Corporation, the length of your credit history determines 15% of your FICO® Score. Your credit score can increase with a longer credit history.

How Can I Improve My Credit History and Credit Scores?

For you to positively impact your credit scores, here are some tips.

Keep Old Accounts Open

The length of your credit history depends on how long you have opened accounts on your credit report. When you keep old accounts open, it helps increase the average age of your credit history. It is advisable to keep your old accounts open instead of closing them.

Paying Your Bills on Time

When you make your credit card and other credit payments on time, it positively impacts your credit scores. Therefore, try to avoid missing or making late payments. Autopay can be helpful if you need help paying bills on time.

Monitor Your Credit

Monitoring your credit can help you reach ideal credit goals. Plus, it helps you keep an eye out for inaccuracies on your credit report.

It’s essential to monitor your credit report. You can sign up with MyScoreIQ services to help monitor your credit and stay on top of your credit scores.

Bottom Line for Length of Credit History

The length of your credit history is important when it comes to determining your credit scores. Keep old accounts open to help improve the average length of your accounts on your credit report.

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*Source: Fair Isaac Corporation.

**Underwritten by AIG.

FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

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