Credit history length accounts for 15% of your FICO score. It considers the age of your oldest account, newest account, and the average age of all accounts.
A longer credit history is better. Lenders want to see that you have managed credit responsibly over time.
Don't close old credit card accounts, as this reduces your average account age. If you're young or new to credit, becoming an authorized user on an older family member's account can help.
How Length Works
FICO considers: age of oldest account, age of newest account, and average age of all accounts. Older is better. Having a 10-year-old account is much better than everything being 2 years old.
Why Old Accounts Matter
Old accounts demonstrate long-term credit management. Closing an old account removes it from your aging calculation after 10 years, but the immediate effect is reduced available credit and potential utilization changes.
Authorized User Strategy
Being added as an authorized user on a family member's old, well-managed credit card adds that account's history to your credit report. This can instantly increase your average account age.
Don't Close Accounts
Closing old credit cards hurts your credit in two ways: it reduces average account age and reduces available credit (which can increase utilization). Keep old cards open, even if you don't use them.
Building History
Building history takes time. Use credit responsibly from a young age. Keep your oldest accounts open. If you're starting from scratch, start with a secured credit card and use it responsibly.
What Lenders Look For
Lenders want to see 2+ years of credit history for the best rates. Less than 2 years is not a deal-breaker, but may result in higher rates or require additional documentation.