Your credit score will be affected by the length of your credit history. Your credit history can be extended with patience and diligence. You can boost your credit score by becoming an authorized user of a long-standing credit cards account. Once you become an authorized user, your credit card issuer has to report your credit information the national credit reporting agencies.
Average age of accounts
The average age of credit accounts is the average amount of years each account has been open. A longer history of credit accounts will result in a higher credit score, particularly if other aspects of credit are in good standing. Your FICO credit score breakdown does not include the age of your credit accounts, but it falls within the category of length credit history.
To calculate your average account age, you can add up all your accounts and divide the total number by the number of cards you have. Your average age will be lower if you open too many new accounts. While the account age matters, it is better to be older than you are, some accounts will close by design.
Average age of credit cards
The average age of credit card cards can reveal a lot about your credit score. It takes into account the number of cards you have and the age of each one. The average age is around eight years. This can be affected by how old the account is and when it was last used.
The average credit card age varies from one region to the next. Rural and commuter residents may not have much financial activity or have a few small businesses. But they spend a lot time driving, which can lead them to borrow. Adults aged between 21-24 are typically eligible to apply for their first credit cards.
Average age for payment history
Rating credit cards is affected by your average payment history age. This number can be calculated by adding all of your credit accounts' ages and then dividing it by the number. You are more likely to have a strong credit rating if your average age is over eight years. But be aware that your average age could decrease if multiple credit cards are opened.
Your credit score will be determined by how old your payments have been. But that's just one factor. Your payment history and the amount of money owed lenders are also important. To establish credit, you must pay your bills in time and maintain a low credit utilization.
Average age of all accounts
Creditors use the Average Age of Accounts in credit history to assess your risk. This is done by subtracting the oldest and newest accounts from the total number of accounts. An older average age is more beneficial than one with a lower average. However, you should avoid opening several credit accounts at the same time. This is because having too many accounts can decrease your average age.
In determining your credit score the oldest account is the most important. The newest accounts are less influential. You can also increase your account's average age by adding family members or friends to existing accounts. Before adding a friend, make sure to ask your card issuer about their reporting policies.