A Longer Credit History Increases your Credit Score

Credit rating agencies believe a longer history where you pay your debt regularly makes you less risky. The longevity of your credit history contributes 15% of your overall credit score.

Your credit history is calculated as an average of all your outstanding debt. Age is a disadvantage here. A 25 year old is unlikely to have a credit history of more than 5-7 years. When that person reaches 50 their credit history will be over 30 years.

Order your credit report. The credit agencies can only report seven years of history. If you have any adverse information (such as late payments or bankrupts) that are older than seven years call in and have them removed.

To increase the length of your credit history:

1. If you don’t have any credit get a credit card now! If you have been declined apply for a secure card. The sooner the better.
2. Keep your oldest credit card active. I keep my first credit card active with a recurring payment that I pay off automatically each month. LINK
3. If your credit history is only a few years old talk to your parents about becoming an authorized user on their accounts. You will inherit the length of their history. HOWEVER, make sure the card is in good standing.

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