The age of each credit card is a key factor in determining the length of your credit history. In an example, let's say you have three credit cards: Card One is three years old, Card Two is five years old, and Card Three is one year old. Your credit history age in this example is three years.
15 points
Your credit score can be affected by the length of your credit history. When determining your credit score models, credit scoring models account for how old the oldest account is. Check out your credit score to see how old you oldest account is. This information can be used to improve your credit score. There are several things you can do in order to increase your credit score.
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 above your credit limit, you will need to establish one. Lenders are looking for evidence that your credit management has been good over a prolonged period. Your credit history counts for approximately 128 points. It shows the date you opened each account and the last time you made a payment.
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. It may take years for your credit score to reach a high point, but it is possible.
Age
Your credit score is affected by the age of your credit history. In general, the older the accounts you have, the higher your score will be. In addition, closing a credit account can damage your score. You can minimize the damage caused by closing your credit card account.
Your credit history's age is the average number years you have held the same type accounts. Three credit cards would give you an average age of three years. If you have five or more cards, your credit score would be seven.
Inquiry by hard copy
You can manage your credit score by being diligent and monitoring it frequently. There are many banks that offer free tools for checking your credit score and credit report. Experian for instance offers free access and reporting to your FICO(r). It is important to monitor your credit reports on a regular basis in order to minimize the impact from 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. These inquiries will cease to be included in credit scores after one year. After two years, these inquiries will also be removed from your credit score.
Average age of account
Consider the average age and length of your accounts when looking at credit history. A longer credit history will raise your credit score while a shorter history will make it worse. Your credit history can be affected by many factors, such as your age and demographics. Keep your credit accounts current and open to increase your credit history.
Having a long credit history will benefit you when applying for a loan or applying for a credit card. You will have a lower average age if you open credit accounts. You should be cautious about opening new accounts unless they will help you achieve your goals.