Your credit history length is one of the most important factors that can influence your credit score. You can improve your credit history by being patient and diligent. A way to increase your score is by becoming an authorized credit card user. The credit card issuer must report your credit data to the national credit agencies by becoming an authorized customer.
Average age of accounts
The average age in credit history is the number of years each credit account was open. If your credit is in good standing, the longer your credit history is, the better your credit score. Although it is not part of your FICO credit score breakdown but falls under the category length of credit history,
Add all accounts to calculate your average age. Divide the total by the number cards you have. 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 cards average age
The average credit card age can tell you a lot more about your credit history. It includes the age of each card, as well the number of credit cards you have. The average age of a card is eight years. However, the age of an account and how recent it was can influence this age.
Geographically, the average age of credit card holders varies. Rural and commuter residents may not have much financial activity or have a few small businesses. But they spend a lot time driving, which can lead them to borrow. Both cases are typical for adults aged 21-24 to obtain their first credit card.
Average age of payment history
Rating credit cards is affected by your average payment history age. This number is calculated using the average age of all credit accounts, divided by the number of accounts. A solid credit rating will be awarded to someone who has an average age of more than eight years. However, you must be cautious because your average age will decrease if you've opened several new credit cards.
The average age of payment history will determine your credit score, but it's not the only factor. Other important factors are the amount owed to lenders as well as your payment history. The best way to establish good credit is to pay off your bills on time and keep your credit utilization rate low.
Average age of all accounts
The Average Age of Accounts combined in credit history is a factor that creditors use to evaluate your risk. It is calculated as the sum of the oldest and newest accounts divided by the number. An older average age is better than a younger one. It is important to avoid opening multiple credit accounts simultaneously. This is because too many accounts can lower your average ages.
Your credit score is determined by the weight of your oldest account. Newer accounts have less weight. You can increase your average account age by adding a relative or friend to one of the existing accounts. However, you must ask the card issuer about its reporting policies before adding a friend.