How Length of Credit History Affects Your Credit Score

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Many details influence your overall credit score. The length of your credit history is minor compared to factors like payment history or credit utilization, but still accounts for 15% of your FICO credit score and 20% of your VantageScore.

What is a good length of credit history?

There’s no “exact” length of credit history that determines a good credit score. The main thing you need to know is that the longer your average credit history, the better off your credit score will likely be.

If you want more of a concrete answer, people with scores above 800 generally have credit histories lasting at least 10.5 years, according to FICO data.

Why does length of credit history matter?

A lender’s primary concern is your ability to repay a loan on time. And a credit score’s purpose is to grade your ability to repay credit.

If you’re brand new to credit, you’re a bit of a wild card; a lender isn’t sure how well you’re able to repay credit without a decent track record. This also applies to someone who has a short credit history.

Simply put, a long credit history is a sign of an experienced borrower, and therefore, likely someone who will be equipped to repay credit. For example, if you have a 10-year-long proven track record of keeping accounts in good standing, and have a positive payment history on top of it, that will result in a higher credit score.

Must read: What's a Good Credit Score Range?

How credit history is calculated

The FICO credit score model measures a few things in the length of credit history category:

• The age of your oldest credit account
• The age of your newest credit account
• The average age of all your accounts
• How long specific credit accounts have been open

How FICO calculates credit scores overall

The bulk of FICO’s credit score variables include payment history (35%) and amounts owed (30%). The length of your credit history accounts for 15% of your credit score, which is more than other factors such as your credit mix (10%) or new credit (10%) are weighted.

How VantageScore calculates credit history

With VantageScore the majority of your credit score rides on payment history. However, age and mix of credit count for a combined 20% of your credit score, equal to the weight of your credit utilization. Following those higher weighted factors is new credit, balance and available credit.

5 ways to improve your credit history

It takes time to develop and maintain good credit. But here are some ways to improve your credit score and your credit history.

1. Frequently check your credit reports. Verify that your personal information is correct and that there aren’t any errors that you should dispute.
2. Pay your bills on time. This can be easier said than done, but paying your bills on time has a huge effect on your overall credit as it’s one of the highest weighted variables in determining your overall credit score.
3. Don’t close an account. Closing accounts could lower the average age of all accounts, thereby hurting your credit score.
4. Become an authorized user on a credit card. As an authorized user, you benefit from the main user’s credit history. And as long as they make timely payments and keep a low balance, your credit score could improve greatly.
5. Avoid opening new accounts. If possible, you may want to avoid adding an excessive number of new accounts. Each new one you open will lower the average age of your total accounts, and applying for new credit can temporarily lower your credit score due to hard inquiries.

Related: How to Check Your Credit Score

Bottom line

The length of your credit history makes up 15% to 20% of your credit score depending, on which model is being used. While it takes time to build your credit history, there are other ways you can build your credit while you wait.

If you’re just starting out building your credit, it’s important to note that you could be eligible for a FICO credit score once you’ve had an account for at least six months. With VantageScore, it only takes having an open account for a month or two.

Keep in mind that credit scores are based on complex scoring systems that analyze a variety of variables, including positive actions in your payment history, credit utilization and other categories, so even with a short credit history you can still have a decent score.