Age of Credit History :
Lenders are looking for experience using credit cards or payment accounts like loans. This is comparable to a job application. (would you want someone who is not as knowledgeable at the job at hand, or someone who has the years of experience in the particular job that can be ‘trusted’ to do said job they were applying for?)
Having an account opened for 10 Years and then closing it, you’re next oldest account will be used for your age of history average. The longer the age the better the score. Keeping these open and active are crucial to keeping this from affecting your score negativity. This is where my services will help with keeping the older unused or useless cards open and active so you can keep that 10 Year history.
It’s all about squeezing the extra points out where you can.
5 accounts with the oldest of 10 years (700 Credit score)
4 accounts oldest of 5 years (one oldest account getting closed) (675 Credit Score)
This both affects your history and number of accounts when looking at your credit report!
A side note to this as well is you want to be smart when opening new accounts as this will lower your ‘average’ because you are adding a new account with less than 1 year of history.
for those who are younger and just entering the scene, opening more than 1 account within a 4-5 year period is smarter in the long run. If you are already established it is advised to wait it out on the offers that come in the mail and when you have not opened up anything in a few years, then to go ahead and apply for one. This all plays together in these categories :
Age of History (Negative)
Number of accounts (Positive)
Credit utilization (Positive)
There is a lot to learn and know when working with accounts and credit scores, but while it may hurt your score in one way suddenly, it will improve the others ; in time it will improve it greatly when the age of history increases