It takes time to build a good credit history that shows any lender how responsible a borrower you are.

A person or business with just a few months of credit history is different from one who has over ten years. However, the secret is in maintaining good financial habits that will constantly grow a positive credit history.

If you regularly damage your credit score, you will not be better off than someone without credit history. Just to make it clear, we will highlight all the important insights that you should know about how credit history affects your credit score.

How Credit History And Credit Age Impact Your Credit Score

1. Length of Credit History and Credit Age

The first thing to know is the length of your credit history. Simply said, it is the time since someone began utilizing credit.

Various credit bureaus will keep your credit history file, and history is submitted by the lenders or utility companies to the credit bureaus.

Today, such data is synchronized, and they may not need to send any data. So, to obtain your credit age, you must find the average length of all your credit accounts.

The two terms (credit history + credit age) often confuse people with most using them interchangeably. After you understand what they mean, it is easy to proceed and understand the impact on your score.

2. How Credit Age Affects Your Score

The older your credit age is, the better your score will be. Of course, this means that you have already made payments on loans and bills.

You are also more responsible when handling other aspects of your finances like credit cards. Lenders prefer to give a loan to an individual or business with a longer credit age.

If you check the Boostcredit101 website, they have more tips on how to maintain a good score as you increase your credit age. This matters as well.

Another important step is to keep the old lines of credit open and maintain them carefully. If you have several older lines of credit that are healthy, they will boost your credit age, which is calculated using the average age.

Lenders usually consider this to be enough information to convince them to give you the loans that you request. More so, they consider this as an average of many lines of credit.

Although there is nothing young people can do other than wait, the older people and businesses who have taken time and care to build their credit scores are better off.

3. Other Things That Affect Your Credit

A mature credit age is not the only factor involved in determining a credit score.

Another major influence to consider is payment history. We have already mentioned that you must maintain a healthy payment history for loans and bills.

How you utilize your credit balance each month is another factor that plays a part as well as the number of lines of credit and the type of credit that you have.

Conclusion

For now, you already know how important it is to maintain a good credit history over time. It comes with experience. However, you also know that other factors that determine your score must also be kept in good condition to warrant a good score.