In the terms of your FICO rating a consumer’s credit history is in regards length you have had credit. The influence it conveys in the FICO rating calculation is 15
. The influence it conveys is because to the connection of the longer a person has used credit the less the risk it it denotes. There are a couple of unique factor taken into account regarding to a credit history.
The first is the average age of all your accounts. You can calculate it by yourself all have to have is a copy of your credit report. In the part dedicated to your lines of credit locate when each account was opened and calculate the mean. Then look for the eldest account.
A big miscalculation many people make is to not understand the information before to closing an account. If most mature line of credit is discontinued it will harm both.
There is little an individual can do to increase this component of the FICO rating formula besides staying away from the general errors we talked about. Furthermore, if you do not carry a balance on the oldest account, it is recommended to use it every now and then. Some lines of credit now and again close the card due to inactivity.