Credit age is 15% of your FICO score. Understanding it helps you make smarter decisions.
What Is Credit Age?
Credit age includes:
- Age of oldest account
- Average age of all accounts
- Age of newest account
How It's Calculated
Average Age of Accounts
(Sum of all account ages) ÷ (Number of accounts)
Example:
- Account 1: 10 years old
- Account 2: 5 years old
- Account 3: 1 year old
- Average: (10 + 5 + 1) ÷ 3 = 5.3 years
Impact on Your Score
FICO Scoring
- Exceptional: 25+ years
- Good: 7+ years
- Fair: 3-7 years
- Needs Work: Under 3 years
Why Old Accounts Matter
They Show
- Long track record
- Relationship stability
- Responsible management
- Financial maturity
Strategies to Build Credit Age
1. Keep Old Accounts Open
Even if you don't use them frequently.
If the card has an annual fee:
- Ask to downgrade to no-fee version
- Use occasionally to keep active
2. Don't Open Too Many New Accounts
Each new account lowers your average age.
3. Become an Authorized User on Old Account
Inherit the account's full history.
4. Be Patient
Time is the only way to build age.
When to Close Accounts (and When Not To)
Don't Close If:
- It's your oldest account
- It would significantly lower average age
- You have no annual fee
- You can just use it occasionally
Consider Closing If:
- High annual fee you can't justify
- Temptation to overspend
- Fraud concerns
Opening New Accounts Strategically
Timing Matters
- Don't open multiple accounts at once
- Space applications by 6+ months
- Consider impact on average age before applying
Before Major Applications
Don't open new accounts 6-12 months before applying for mortgage or auto loan.
Account Age Myths
Myth: Closing account removes history
Truth: Closed accounts stay on report for 10 years.
Myth: Only oldest account matters
Truth: Average age of all accounts is calculated.
Myth: You need decades of history
Truth: 7+ years is considered good.
Protecting Your Credit Age
- Review accounts before closing any
- Calculate impact on average age
- Keep oldest accounts active
- Limit new account applications
Building for the Long Term
Pioneer Credit Solution helps with long-term credit strategies. Call 1-888-271-2293.