Short answer - The Length of credit history affects your credit by showing how long you’ve managed credit. The longer your history, especially with on-time payments, the better it is for your credit score.
How Does Length of Credit History Affect Your Credit?
When it comes to maintaining a good credit score, there are many contributing factors — your repayment history, credit utilisation, types of credit, and even how long you've had credit accounts. Among these, credit history length is one of the most overlooked but important elements. Many people focus only on current spending and bill payments, but the age of your credit accounts says a lot about your credit habits and financial discipline over time.
In this blog, we’ll explore what credit history is and how it impacts your credit score.
What is Credit History?
Credit history refers to the record of how long you have been using credit. It includes details like:
- When you first opened a credit account (such as a credit card or loan),
- How long each account has been active,
- Your payment behaviour on these accounts.
Lenders and credit scoring systems use this information to assess your borrowing behaviour over time. A long and well-managed credit history suggests that you are experienced in handling credit responsibly, which makes you appear more trustworthy to lenders.
Credit History Length and Your Credit Score
Your credit history length plays a significant role in determining your credit score. While different credit scoring models may weigh factors slightly differently, the length of your credit history generally accounts for around 15% of your total credit score.
Here’s how it impacts your overall rating:
1. Average Age of Accounts
This refers to the average time all your credit accounts have been open. A longer average age helps improve your credit score. Opening new accounts frequently or closing old ones can reduce this average.
2. Age of Oldest Account
The older your longest-standing account, the better. It shows that you've had credit available to you for a long time and have managed it well.
3. Recent Activity
Accounts that are both old and active positively impact your credit score. If an account is very old but hasn't been used in years, it may not help your score as much.
Why Does Length of Credit History Matter?
Many people ask why the duration of credit usage is so important. After all, shouldn’t current behaviour matter more? The answer is — both are important, but the credit history length gives lenders a fuller picture of your long-term financial habits.
Here’s why it matters
1. Shows Long-Term Responsibility
A long credit history with timely payments indicates that you’ve managed credit responsibly for years, not just in the short term.
2. Helps Offset Other
If you missed a payment only once across a long, positive credit history, it can balance that out.
3. Boosts Your Credit Score
All other things being equal, someone with a longer credit history will usually have a good credit score compared to someone with a shorter one, even if their usage is the same.
How to Improve Credit Score with Credit History
If you're just starting out or have a short credit history, don’t worry — there are still ways to build your score gradually. Here’s how:
1. Start Early
The sooner you open your first credit account, the better. It could be a credit card, a small personal loan, or even a secured credit card. The goal is to start building history.
2. Keep Old Accounts Open
Even if you no longer use an old credit card often, consider keeping it open. Closing an older account can reduce the average age of your credit accounts, which may lower your score.
3. Use Credit Responsibly
Make timely payments, avoid maxing out your credit limits, and use only a small portion of your available credit. These actions help build a positive long-term record.
4. Avoid Too Many New Accounts at Once
Opening multiple new credit accounts within a short time can lower your average account age and may temporarily bring down your score.
Checking Your Credit Score Online
To keep track of how your credit history length is helping (or hurting) your score, it’s wise to check your credit score online at regular intervals. This helps you:
- Track improvements over time,
- Identify areas that need attention,
- See how new accounts affect your score.
When you check your credit score online, you’ll usually also see a breakdown of the factors affecting your credit score, including the length of your credit history. This provides valuable insight into what’s working and what you can improve.
Common Mistakes to Avoid
Let’s look at a few things you should avoid if you want to use your credit history to your advantage:
- Closing old accounts without reason – Keep them open if there’s no annual fee or negative impact.
- Ignoring unused accounts – Use them occasionally to keep them active.
- Applying for too many new loans or cards – Every new application may temporarily impact your score and reduce your account age average.
Conclusion
Your credit history length is more than just a number—it’s a reflection of your long-term financial habits. While you can’t instantly create a long credit history, what you can do is start early, maintain accounts over time, and use credit wisely. By doing so, you strengthen your profile and move closer to achieving a good credit score.
And don’t forget to check credit score online regularly to monitor progress, understand how your credit history is contributing to your score.
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