How does length of credit history affect score?

How does length of credit history affect score?

While it isn’t the most important factor used to calculate your FICO® score, the length of your credit history does matter. Generally, the longer your credit history, the better it is for your credit score. The minimum amount of time you need to have an account open for FICO® to calculate a credit score is six months.

Does length of employment affect credit score?

Employment Information Doesn’t Affect Your Credit Scores The employment history that appears on your credit report is never factored into your credit scores. Your employer has nothing to do with the way you’ve managed credit and debt, so it’s not a factor in your scores.

Is 2 years of credit history good?

The longer your credit history, the better it is for your credit score. That’s because lenders are more comfortable with borrowers who have a long history of paying their bills on time. Customers with a short credit history haven’t yet shown that they can be trusted to make their payments on time over the long haul.

What length of credit is exceptional?

seven years
A good credit score doesn’t come quickly. Excellent credit requires seven years of open credit accounts and on-time payments. Here’s why, and what you can do to manage your finances while working to build good credit.

How long does it take to build a 700 credit score?

It will take about six months of credit activity to establish enough history for a FICO credit score, which is used in 90% of lending decisions. 1 FICO credit scores range from 300 to 850, and a score of over 700 is considered a good credit score. Scores over 800 are considered excellent.

What is a good average credit age?


Credit score Average age of credit accounts Oldest account age
650-699 (Fair credit) 7 years 12 years
750-850 (Excellent credit) 11 years 25 years