Your credit history length is one of the most important factors that can influence your credit score. It is possible to increase the length of your credit history if you have patience and are diligent. To improve your credit score, you can become an authorized user for a credit card account. Authorized users are those who have been authorized by the credit card issuer to report credit information to national credit bureaus.
Average age of accounts
Your average credit history age is the average length of time each credit account has been open. The longer your account history, the higher your credit score, especially if all other aspects of your credit are in good standing. However, the age of credit accounts is not included on your FICO credit scoring breakdown. It falls under the category "Longevity of credit history".
To find your average age in accounts, add up all of them and divide that number by the amount of cards you own. Remember that opening new accounts will decrease your average age so it is best to avoid opening too many. While the account age matters, it is better to be older than you are, some accounts will close by design.
Credit card average age
Your credit history can be reflected in the average age of your credit cards. It also takes into account how old each card is. The average age of a card is eight years. However, this age can also be influenced by the age of the specific account and how recently it was used.
The average age for credit cards varies depending on where you live. People who live in rural areas or commuter towns may not have significant financial activity. They may also not own many small businesses. They do commute a lot, which can result in borrowing. Both cases are typical for adults aged 21-24 to obtain their first credit card.
Average age of payment history
The average age of payment history is an important factor for credit card ratings. This number is calculated simply by adding up all your credit accounts ages and dividing by the number. If your average age exceeds eight years, it's likely that you will have a good credit rating. Be careful, however, as you may see your average age decrease if there are multiple credit cards you have opened.
Your credit score will be determined based on your average payment history. Other factors that are important include your payment history and how much money you owe lenders. You can build good credit by paying your bills on-time and keeping your credit utilization rate low.
Average age of accounts combined
Creditors use this factor to determine your risk. This is done by subtracting the oldest and newest accounts from the total number of accounts. An older average age is better than a younger one. However, you should avoid opening several credit accounts at the same time. This is because opening too many credit accounts at once can reduce your average age.
The oldest account weighs the most in determining credit score. However, the newer accounts are given less weight. You can also add a friend or relative to your accounts to increase their average age. However, you must ask the card issuer about its reporting policies before adding a friend.