How does length of credit history affect credit scores?

The amount of time credit accounts have been established on credit reports reflects the length of a person’s credit history. Credit-scoring companies use the age of credit accounts to calculate credit scores. It’s generally better to have a longer credit history. But it’s not quite that simple. Learn more about how credit age works.

Key takeaways

• Length of credit history, or credit age, reflects a person’s experience managing credit. 
• Credit age can be measured in a few ways, including the age of a person’s oldest account, the age of a person’s newest account and the average age of all a person’s credit accounts.
• When it comes to credit scores, the importance of credit age depends on the scoring model.
• Credit-scoring company FICO® says credit age accounts for 15% of its credit scores. VantageScore® says it accounts for 20%-21% of its latest credit scores.

Sometimes called credit age, the length of your credit history is the amount of time the credit accounts on your credit reports have been open. These accounts could include credit card accounts, installment loans and more. 

Length of credit history contributes to your credit scores by giving potential lenders a view of your experience handling credit over time.

Both FICO and VantageScore scoring calculations take length of credit history into account. Their models might consider information like the age of your oldest account, the average length of all your accounts or how long it’s been since you’ve opened an account. But they weigh credit age differently. For example, length of credit history makes up 15% of FICO scores and 20% or 21% of VantageScore scores. 

When you open or close an account, it’s reported to the three major credit bureaus—Experian®, Equifax® and TransUnion®.

FICO includes closed accounts in their credit history calculations, so even if your account is closed, the time it was open will still factor into your overall credit age. 

Closed accounts typically remain on your credit report for 10 years if the account is in good standing. VantageScore, however, may exclude some closed accounts, which could lower your overall average credit age.

Broadly speaking, the longer you’ve had an account open the better. But there’s no perfect credit age. 

Improving your length of credit can take time. If you’re trying to establish credit, secured credit cards and credit-builder loans are two options.

Becoming an authorized user is another. If your parent or spouse has a long-standing credit card, becoming an authorized user could help you benefit from that credit age, as long as the credit card issuer reports authorized users to the credit bureaus.

There are factors beyond credit age that go into credit-scoring calculations:

• Payment history: Payment history is a record of how well you make on-time payments and if you’ve had any missed or late payments. For both FICO and VantageScore scores, payment history is the most important factor.
• Credit utilization: This ratio explains the difference between how much credit you are using and your total available credit. The Consumer Financial Protection Bureau recommends keeping your credit utilization under 30%.
• Credit mix: A representation of the different types of credit you’re using, typically revolving and installment. VantageScore factors credit mix in with credit age and refers to it as depth of credit.
• New credit: A measure of how recently you applied for a line of credit. Applying for new credit accounts typically triggers a hard inquiry on your credit reports, which can lower your credit scores temporarily. Opening new accounts can also bring down the average age of your credit.

Having a long credit history can contribute to building credit over time—as long as you use credit responsibly.

Monitoring your credit regularly can help you track your progress. With CreditWise from Capital One, you can access your TransUnion credit report and VantageScore 3.0 score at any time—without hurting your credit. And CreditWise is free for everyone, whether you are a Capital One cardholder or not.