You should consider the age and history of each account when determining 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 may be affected by how long you have had your credit history. When determining your credit score models, credit scoring models account for how old the oldest account is. Your credit report will reveal how old your oldest accounts are. This information can help improve your credit score. However, the average credit score in America is 711; there are many things you could do to improve your score.
128 points
You can increase your credit score by paying more on your credit cards than the minimum and by reducing the total balance on all of your credit cards. To avoid exceeding your credit limit, you should set it yourself. Lenders look for evidence that you have managed your credit well over a long time. The length of your credit history is worth about 128 points. It shows when each of your accounts was opened and when the last payment was made.
While you cannot get a loan or credit card if you have a score of 128 or below, there are ways to boost your credit score. It can take a few years to raise your credit score to a high level, but it's possible.
Age
Your score will be affected by your credit history. Your score will increase if you have more than one credit account. Closing a credit card account can also damage your score. There are ways you can reduce the impact of closing your credit account.
The average age of your credit history is the number of years you have had the same type account. The average age of three credit cards is three years. If you have five or more cards, your credit score would be seven.
Inquiry by hard copy
Being diligent and keeping track of your credit score are the best ways to manage it. Many banks provide free tools for checking credit scores and your credit reports. Experian offers access to your FICO(r), Score for free. 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 called a "hard inquiry" and it will affect your credit score. These inquiries will not be included in your credit score for one year. They will also disappear from your credit history after two years.
Average age of accounts
The average age of your accounts should be considered when looking at credit history. Longer credit histories will improve your credit score. A shorter history will lower it. Your credit history can be affected by many factors, such as your age and demographics. Your credit score will increase if you keep your accounts current and open.
If you are applying for a loan and/or a credit card, a long credit record will be of benefit. The average age of your credit history will decrease if you open new credit accounts. You should be cautious about opening new accounts unless they will help you achieve your goals.