Improving your credit score: Length of credit history

The length of your credit history affects about 15% of your FICO® credit score.*

The longer you’ve been building your credit history, the better it looks to the credit bureaus. They assume that a person with 15 years of recorded on-time payments is more likely to continue making on-time payments than a person with 1 year of on-time payments.

Here’s an idea for improving your length of credit history, without having to wait several years.

Don’t open several new accounts in a short time period. Your FICO® credit score considers the average age of your accounts. If you open a number of accounts at the same time, your average age will be younger.

What is a FICO® credit score and what goes into it?
A credit score is a calculation that indicates how likely you are to pay back debts. The FICO® score is the most common type, and is a three digit number (between 300 and 850), where a higher score means more likely to pay back a debt. It is calculated by a math formula that takes into account the following factors:

Payment history (35%)
Amount owed (30%)
Length of credit history (15%)
Credit mix (10%)
New credit (10%)

Learn more

*FICO® is solely responsible for its credit score calculation. Information contained on the FICO® website is its own content and is not managed, sponsored or endorsed by Oportun. Oportun does not require a credit score to qualify for its products nor does Oportun rely on this score.

You Might Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *