When Maria applied for her first mortgage in 2025, she was shocked. Despite a perfect payment history and low credit card balances, her FICO score sat at 710, good, but not great. Her loan officer pointed to one factor: her oldest credit account was only four years old. Meanwhile, her colleague Jake, with similar financial habits but a 12-year credit history, scored 775 and secured a rate 0.5% lower. That difference would cost Maria an extra $47,000 over 30 years.

Length of Credit History is the silent architect of your credit score, a time-based factor that rewards patience and punishes haste. Unlike payment history (which you control daily) or credit utilization (which you can fix in weeks), credit age is built in years, not months. It accounts for 15% of your FICO score and plays an even larger role in VantageScore models.

This guide breaks down the math behind credit history length, explains how scoring models calculate it, and provides evidence-based strategies to build credit age, even if you’re starting from zero.

Key Takeaways

Length of Credit History represents 15% of your FICO score, measuring the age of your oldest account, newest account, and average age across all accounts.

Consumers with FICO scores above 785 average 11 years of credit history, with their oldest accounts opened approximately 25 years prior.

Closed accounts continue aging on your report for up to 10 years, meaning strategic account closure doesn’t immediately damage your credit age calculation.

Opening new accounts lowers your average credit age, creating a temporary score dip that recovers as those accounts mature over time.

You can build strong credit in 3-5 years if other factors (payment history, utilization) remain excellent, though 10+ years provides maximum scoring benefit.

What Is Length of Credit History? (And Why It Matters)

Length of Credit History refers to the time-based measurement of all credit accounts on your credit report, including credit cards, personal loans, auto loans, and mortgages. Credit scoring models analyze this factor to assess your experience managing credit over time.

The Three Components Scoring Models Evaluate

Credit bureaus don’t just look at one date. They calculate three distinct metrics:

1. Age of Your Oldest Account: The account that’s been open longest, establishing your credit “floor.”
2. Age of Your Newest Account: The most recently opened account, indicating recent credit-seeking behavior
3. Average Age of All Accounts: The mean age across every open and closed account still reporting

Example calculation:

• Account A (credit card): 10 years old
• Account B (auto loan): 5 years old
• Account C (credit card): 2 years old
• Average Age: (10 + 5 + 2) ÷ 3 = 5.67 years

This average age becomes a key input in your credit score formula. As a result, opening a new account immediately lowers this number, while keeping old accounts open preserves it.

Why Lenders Care About Credit Age

From a lender’s perspective, credit history length demonstrates behavioral consistency. A borrower who has managed credit responsibly for 15 years presents lower statistical risk than someone with only 18 months of history, even if both have perfect payment records.

Federal Reserve data shows that consumers with credit histories exceeding 10 years default at rates 40% lower than those with histories under three years. Therefore, credit age functions as a proxy for reliability and financial maturity.

Understanding how credit scores work holistically helps contextualize why this 15% weight matters alongside payment history and utilization.

How FICO and VantageScore Calculate Length of Credit History

The two dominant credit scoring models, FICO and VantageScore, treat credit history length differently, though both consider it highly influential.

FICO’s 15% Allocation

FICO assigns 15% of your total score specifically to the length of your credit history. This makes it the third-most important factor after:

• Payment History: 35%
• Amounts Owed (Utilization): 30%

Within that 15%, FICO evaluates:

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

Insight: FICO treats closed accounts favorably. A closed account in good standing continues to age on your report for 10 years after closure, still contributing to your average age calculation during that period.

VantageScore’s Combined Approach

VantageScore (used by some lenders and many credit monitoring services) bundles Length of Credit History with Credit Mix into a single category labeled “highly influential.”This combined factor carries approximately 20-21% weight, slightly more than FICO’s isolated 15%.

Key difference: VantageScore stops aging closed accounts immediately upon closure, making account management more delicate for consumers using this model.

Side-by-Side Comparison

Takeaway: Because closed accounts behave differently across models, consumers should verify which scoring model their target lender uses before making account closure decisions. Many mortgage lenders rely on FICO, while credit card issuers increasingly use VantageScore.

For a broader context on how different financial metrics interact, explore how credit utilization and credit mix complement credit age in your overall score.

What Counts as a “Good” Length of Credit History?

There’s no universal threshold, but data reveals clear patterns among high-scoring consumers.

The Benchmarks That Matter

3 Years: Minimum for “established” credit
At three years, you’ve demonstrated basic credit management competency. Most lenders will approve standard credit products, though premium cards and optimal mortgage rates remain difficult to access. A FICO score of 680-720 is typical with excellent payment history.[6]

7 Years: Strong credit foundation
Seven years of history places you in the upper-middle tier. Combined with low utilization and perfect payments, scores of 740-760 become achievable. This threshold unlocks competitive mortgage rates and premium rewards cards.

10+ Years: Elite credit age
Consumers with credit histories exceeding 10 years, and the oldest accounts opened 20+ years prior average FICO scores above 785. This demographic receives the best rates on all credit products and qualifies for invitation-only financial services.

Real-World Credit Profiles

Case Study: Jake (New Renter, 2-Year History)

• Oldest account: 2 years (secured credit card)
• Newest account: 6 months (auto loan)
• Average age: 1.25 years
• FICO score: 695 (with perfect payment history, 15% utilization)
• Limitation: Denied premium travel card; offered 18.9% APR on auto loan

Case Study: Maria (Mortgage Applicant, 12-Year History)

• Oldest account: 12 years (student credit card, still open)
• Newest account: 8 months (balance transfer card)
• Average age: 7.3 years
• FICO score: 775 (with 2 late payments from 2018, 8% utilization)
• Advantage: Approved for a 6.25% mortgage rate vs. 6.75% for a comparable applicant with a 4-year history

The Math Behind the Difference:
On a $400,000 mortgage:

• 6.25% rate = $2,462/month payment
• 6.75% rate = $2,594/month payment
• Monthly savings: $132
• 30-year savings: $47,520

This demonstrates the compound value of credit age over time, a concept similar to how compound interest builds wealth through patient accumulation.

How Length of Credit History Impacts Your FICO Score

Understanding the mechanics reveals why certain actions help or hurt your score.

The Aging Process: A Timeline

Months 1-6 (New Account)
Opening a new account creates an immediate dip in average age. If your existing average is 5 years and you open a new card, the calculation shifts:

• Before: (8 years + 6 years + 2 years) ÷ 3 = 5.33 years
• After: (8 + 6 + 2 + 0) ÷ 4 = 4 years
• Impact: 5-15 point score decrease (temporary)

Year 1-3 (Establishing Pattern)
The new account begins contributing positively as it ages. Payment history becomes more valuable than the age penalty. Your score recovers and often exceeds the pre-opening level if you maintain low utilization.

Year 5-10 (Maturation)
Accounts in this range provide maximum benefit. They’re old enough to demonstrate stability but recent enough to show active credit management.

Year 10+ (Legacy Accounts)
These accounts become your credit foundation. Closing them creates disproportionate damage because they anchor your average age calculation.

What Happens When You Close an Account

Under FICO:
The closed account remains on your report for 10 years (if closed in good standing), continuing to age and contribute to your average. Your score impact is minimal initially, though you lose the available credit (affecting utilization).

Under VantageScore:
The account stops aging immediately. If you close an 8-year-old card, it freezes at 8 years while your other accounts continue aging, gradually lowering your average.

Strategic Consideration: Before closing any account older than your current average age, calculate the impact:

Formula:
New Average Age = (Sum of Remaining Account Ages) ÷ (Number of Remaining Accounts)

Example:

• Current accounts: 10 years, 7 years, 4 years, 2 years (average: 5.75 years)
• Close 10-year account (FICO): Average becomes (7 + 4 + 2) ÷ 3 = 4.33 years
• Impact: 1.42-year reduction in average age ≈ , 10-20 point score decrease

This type of financial decision-making mirrors the analytical approach used in budgeting strategies, where small percentage changes compound over time.

Common Misconceptions About Credit History Length

Myth 1: “Closing old accounts doesn’t affect credit age.”

Reality: Under VantageScore, closed accounts stop aging immediately. Under FICO, they continue aging for 10 years—but you still lose available credit, which impacts your credit utilization ratio.

Myth 2: “You need 10 years to get a good credit score.”

Reality: Consumers can achieve FICO scores above 750 with just 3-5 years of history if payment history is perfect (0 late payments) and utilization stays below 10%. The length of history is only 15% of the formula.

Myth 3: “Opening new accounts always hurts your score.”

Reality: The initial dip from lowered average age is temporary (typically 3-6 months). If the new account improves your credit mix or lowers overall utilization, the net effect becomes positive within 6-12 months.

Myth 4: “Authorized user accounts don’t count.”

Reality: Most scoring models include authorized user accounts in age calculations. If a parent adds you as an authorized user on a 15-year-old card, that account’s age typically benefits your average, though some lenders manually remove these when underwriting.

Myth 5: “Negative items permanently damage credit age.”

Reality: Late payments, collections, and charge-offs fall off your report after 7 years.[7] Once removed, they no longer impact your score, though the account’s age may continue contributing if it remains open and in good standing.

Evidence-Based Strategies to Improve Length of Credit History

Since credit age builds over time, the strategies focus on preservation and strategic acceleration.

Strategy 1: Keep Your Oldest Account Open (Even If Unused)

Your oldest account anchors your credit history. Even if you no longer use it, keeping it open preserves your maximum account age.

Action steps:

• Set a small recurring charge (Netflix, Spotify) on your oldest card
• Enable autopay to ensure zero missed payments
• Check the account quarterly to prevent issuer closure due to inactivity

Data point: Credit card issuers typically close accounts after 12-24 months of zero activity. A single $10 monthly charge prevents this.

Strategy 2: Become an Authorized User on a Seasoned Account

If a family member has a credit card opened 10+ years ago with perfect payment history, ask to be added as an authorized user. Most issuers report the full account history to your credit file.

Requirements for maximum benefit:

• Primary account holder has a 700+ credit score
• Account is at least 5 years old
• Utilization on the account stays below 30%
• Zero late payments in the account history

Expected impact: 15-40 point FICO score increase for consumers with thin files (under 3 years of history).

Caution: If the primary account holder misses payments or maxes out the card, it damages your score equally. Choose carefully.

Strategy 3: Avoid Closing Old Accounts Unless Necessary

Before closing any account, calculate the impact on your average age. Close only if:

• The account charges an annual fee you can’t justify
• You have impulse control issues and need to remove temptation
• The account is significantly newer than your average age

Better alternative: Downgrade fee-based cards to no-fee versions within the same issuer family. This preserves the account age while eliminating costs.

Strategy 4: Space Out New Account Applications

Each new account lowers your average age. Opening multiple accounts in a short period creates compounding damage.

Optimal spacing:

• Wait 6-12 months between new credit card applications
• Apply for installment loans (auto, personal) separately from revolving credit
• Use pre-qualification tools to avoid unnecessary hard inquiries

Example impact:

• Opening 3 cards in one month: Average age drops 40-50%
• Opening 3 cards over 18 months: Average age drops 15-20%

Strategy 5: Start Building Credit Early (Even Passively)

The earlier you establish credit, the longer your history grows. Options for young consumers:

Secured Credit Card (age 18+):
Deposit $200-500, receive a card with a matching limit. Use for small purchases, pay in full monthly. The account ages while you build payment history.

Student Credit Card (age 18-24):
Designed for limited credit history. Lower limits but easier approval. Becomes your oldest account if opened during college.

Credit-Builder Loan (any age):
Offered by credit unions and online lenders. You make payments into a savings account, then receive the funds after completion. Builds both payment history and age.

For those managing multiple financial goals simultaneously, this approach aligns with broader wealth building principles: small, consistent actions compound over years.

Strategy 6: Monitor Closed Accounts on Your Report

Ensure closed accounts remain on your report for the full 10-year period (FICO) or verify they’re removed cleanly (VantageScore). Errors occur frequently.

How to check:

• Pull free credit reports annually at AnnualCreditReport.com
• Review the “Account History” section for closure dates
• Dispute any accounts that disappeared prematurely (if beneficial)

The Interaction Between Credit Age and Other Score Factors

Length of credit history doesn’t exist in isolation. It interacts mathematically with other FICO components.

Credit Age + Payment History

Scenario: Two consumers, both with perfect payment histories

• Consumer A: 3 years of history, 5 accounts, 100% on-time payments → FICO 720
• Consumer B: 12 years of history, 8 accounts, 100% on-time payments → FICO 780

The 60-point gap comes primarily from credit age (15%) and the secondary effects on credit mix and utilization calculations.

Credit Age + Utilization

Older accounts often carry higher credit limits because issuers increase limits over time for responsible users. This creates a utilization advantage.

Example:

• New card: $2,000 limit
• 10-year-old card: $15,000 limit (after periodic increases)

If you carry a $1,500 balance:

• New card utilization: 75% (severe score damage)
• Old card utilization: 10% (minimal impact)

This demonstrates why keeping old accounts open serves dual purposes: preserving age and maintaining low utilization ratios.

Credit Age + Credit Mix

Consumers with longer histories typically have more diverse account types (credit cards, auto loans, mortgages, student loans). This diversity contributes an additional 10% to FICO scores through the credit mix factor.

Synergy effect: A 10-year credit history with 5 different account types scores higher than a 10-year history with only credit cards, even if all other factors are identical.

Length of Credit History for Specific Financial Goals

Different financial objectives require different credit age strategies.

Applying for a Mortgage

Mortgage lenders scrutinize credit age heavily because home loans represent 15-30 year commitments. They want evidence that you can manage long-term debt.

Optimal profile:

• Oldest account: 7+ years
• Average account age: 4+ years
• No new accounts opened in the 6 months before the application
• At least one installment loan (auto, student) aged 2+ years

Pre-mortgage strategy (12 months out):

1. Avoid opening new accounts
2. Pay down balances to below 10% utilization
3. Become an authorized user on a parent’s mortgage or an old credit card
4. Dispute any errors on credit reports

This preparation can improve your rate by 0.25-0.75%, saving tens of thousands over the loan term, similar to how the 4% rule optimizes retirement withdrawal rates through small percentage improvements.

Qualifying for Premium Credit Cards

Cards offering 2%+ cash back or premium travel rewards require FICO scores of 740+. Credit age plays a significant role in reaching this threshold.

Typical requirements:

• Minimum 5 years of credit history
• Average age above 3 years
• At least 2 accounts aged 3+ years

Acceleration tactic: If you have a thin file, becoming an authorized user on a parent’s 15-year-old card can instantly meet these requirements, assuming other factors (income, payment history) are strong.

Renting an Apartment

Landlords increasingly use credit reports for tenant screening. While they focus primarily on payment history and collections, credit age signals stability.

Landlord perspective:

• 1-2 years of history: Acceptable with strong income verification
• 3-5 years of history: Standard approval
• 7+ years of history: Preferred tenant status

For renters building credit, understanding the 3x rent rule alongside credit age helps optimize approval odds.

Auto Loan Approval and Rates

Auto lenders offer tiered rates based on credit scores, with credit age influencing which tier you qualify for.

Rate tiers (2025 average rates):

• Excellent (760+, 7+ years history): 5.5-6.5% APR
• Good (700-759, 3-7 years history): 7.0-9.0% APR
• Fair (650-699, 1-3 years history): 10.0-14.0% APR
• Poor (<650, <1 year history): 15.0-20.0% APR

Impact on a $30,000 loan (60 months):

• At 6.0%: $580/month, $4,800 total interest
• At 12.0%: $667/month, $10,020 total interest
• Difference: $5,220 paid purely to interest due to credit age and score gaps

Combining credit age optimization with smart financing decisions like the 20/4/10 rule maximizes affordability.

Advanced Considerations: Credit Age Edge Cases

Student Loans and Credit Age

Federal student loans don’t require credit checks for most borrowers, but they do report to credit bureaus. A student loan opened at age 18 becomes your oldest account by default.

Strategic insight: Even if you pay off student loans early, keeping the account open (with a $0 balance) preserves the age benefit. However, federal loans close automatically upon full payoff, so this strategy only applies to private student loans that allow voluntary closure.

Business Credit Cards and Personal Credit Age

Business credit cards issued to sole proprietors often report to personal credit bureaus. Opening multiple business cards in a short period can damage your personal credit age.

Mitigation: Use an EIN (Employer Identification Number) instead of an SSN when applying. Some issuers won’t report EIN-based cards to personal credit files, preserving your personal credit age.

Authorized User Removal

If you were added as an authorized user to build credit age, removing yourself later erases that account from your history.

Before removing:

• Calculate your average age with and without the authorized user account
• Ensure you have sufficient personal account history (3+ years)
• Time for the removal to avoid impacting pending credit applications

Credit Age After Bankruptcy

Chapter 7 bankruptcy remains on credit reports for 10 years, but doesn’t reset your credit age to zero. Accounts included in bankruptcy close, but their age continues to be calculated until they fall off your report (10 years for Chapter 7 accounts).

Rebuilding strategy:

• Open a secured card immediately after discharge
• Become an authorized user on a family member’s account
• Apply for a credit-builder loan
• Target 3-5 years of new positive history to offset bankruptcy impact

Conclusion: Time Is Your Most Valuable Credit Asset

Length of Credit History represents the one credit score factor you cannot rush. Unlike payment history (which you control daily) or utilization (which you can fix immediately), credit age requires patience and strategic preservation.

The data is clear: consumers with 10+ years of credit history and the oldest accounts opened 20+ years prior average FICO scores above 785, unlocking the best rates on mortgages, auto loans, and credit cards.[2] That translates to hundreds of thousands in interest savings over a lifetime.

Your Action Plan

If you’re new to credit (0-2 years):

1. Open a secured credit card or become an authorized user today
2. Set up autopay for a small recurring charge
3. Never close your first account—it becomes your credit foundation
4. Wait 6-12 months before opening a second account

If you have a moderate history (3-7 years):

1. Audit your oldest accounts and ensure they remain active
2. Avoid closing any account older than your average age
3. Space new account applications 6+ months apart
4. Consider the authorized user status on a parent’s oldest card

If you have established history (7+ years):

1. Maintain your oldest accounts with minimal activity
2. Downgrade fee-based cards rather than closing them
3. Use your strong credit age to negotiate better rates on loans
4. Help family members by adding them as authorized users

Remember: Credit age compounds like interest in investment accounts; the earlier you start, the more powerful it becomes. A credit card opened at age 20 becomes a 30-year-old account by age 50, anchoring your credit profile for life.

Start building today. Your future self will thank you.

Interactive Tool: Credit Age Impact Calculator

References

[1] MyFICO. (2025). “What’s in my FICO Scores?” Retrieved from https://www.myfico.com/credit-education/whats-in-your-credit-score

[2] Experian. (2024). “What Is a Good Length of Credit History?” Retrieved from https://www.experian.com/blogs/ask-experian/what-is-a-good-length-of-credit-history/

[3] Federal Reserve Board. (2023). “Report on the Economic Well-Being of U.S. Households.” Retrieved from https://www.federalreserve.gov/publications/2023-economic-well-being-of-us-households-in-2022-banking-and-credit.htm

[4] Consumer Financial Protection Bureau. (2024). “How long does information stay on my credit report?” Retrieved from https://www.consumerfinance.gov/ask-cfpb/how-long-does-information-stay-on-my-credit-report-en-1419/

[5] VantageScore. (2025). “VantageScore 4.0 Model Overview.” Retrieved from https://vantagescore.com/

[6] FICO. (2024). “Building Credit from Scratch.” Retrieved from https://www.fico.com/blogs/building-credit-from-scratch

[7] Fair Credit Reporting Act. (2024). 15 U.S.C. § 1681c – Requirements relating to information contained in consumer reports.

[8] Consumer Financial Protection Bureau. (2023). “Authorized user accounts and credit scores.” Retrieved from https://www.consumerfinance.gov/

Author Bio

Max Fonji is the founder of The Rich Guy Math, a data-driven financial education platform dedicated to explaining the mathematical principles behind wealth building, credit optimization, and evidence-based investing. With expertise in financial analysis and credit scoring systems, Max translates complex financial concepts into actionable strategies that empower readers to make informed decisions based on numbers, logic, and empirical evidence.

Educational Disclaimer

This article provides educational information about payment history and credit scoring for informational purposes only. It does not constitute financial advice, credit repair services, or legal counsel. Credit scoring models vary by lender and application type. Individual results depend on complete credit profiles, income, debt-to-income ratios, and lender-specific underwriting criteria. Readers should consult qualified financial advisors, credit counselors, or legal professionals before making significant financial decisions. The Rich Guy Math does not guarantee specific credit score improvements or lending outcomes based on strategies discussed in this article.