Credit Age

What is Credit Age?

Credit age, sometimes called “length of credit history,” refers to how long your
credit accounts have been open and active. This includes the age of your oldest
account, your newest account, and the average age of all your accounts combined.
Credit scoring models typically consider all three of these factors when evaluating
this portion of your credit profile.

Why Credit Age Matters

Length of credit history generally accounts for approximately 15% of a FICO credit
score, making it a meaningful but not overwhelming factor in your overall
creditworthiness. Lenders may view a longer credit history as a sign of financial
stability, since it provides more data about how you manage debt over time. A longer
history may help demonstrate consistent, responsible borrowing habits, which can
reassure lenders that you are a lower-risk borrower.

Conversely, a shorter credit history does not automatically mean a poor credit
score. Other factors, such as on-time payment history and low credit utilization,
typically carry more weight and may offset a limited credit age.

A Practical Example

Suppose you have three credit accounts. Your oldest credit card was opened eight
years ago, a car loan was opened three years ago, and a new store credit card was
opened six months ago. To find your average credit age, you would add those values
together and divide by three. In this case, the average age would be approximately
3.8 years. Opening that new store card lowered your average, which may cause a
small, temporary dip in your score. Over time, as the account ages, that effect
generally fades.

A helpful tip: if you are not actively using an older credit card, keeping it open
rather than closing it may help preserve your average credit age and protect your
score.

Sources

• Consumer Financial Protection Bureau (CFPB). “What is a credit score?”
  
  consumerfinance.gov
  
• Consumer Financial Protection Bureau (CFPB). “How do I get and keep a good credit score?”
  
  consumerfinance.gov