Background

Length of credit history is a distinct component of most credit-scoring models (around 15% of a FICO Score) and is used to signal stability and borrowing experience to lenders (FICO). Unlike payment history or utilization, account age can only improve with time, so its effects are gradual but persistent.

How it works

  • What scorers measure: scoring models look at the average age of your accounts, the age of your oldest account, and how recently you opened new accounts. Opening multiple accounts in a short period reduces your average age and can lower your score; keeping older accounts open raises that average over time (FICO).
  • Closed accounts: positive accounts usually stay on your credit reports for up to 10 years after closing; negative items generally fall off after 7 years (Consumer Financial Protection Bureau; FTC). That record retention affects the visible age of your credit history to lenders.
  • Timing: changes are not instantaneous. Your score reflects account age each time the bureaus recompute scores (typically when creditors report), so expect the impact to appear over one or more reporting cycles.

Real-world examples

  • New accounts: a borrower who opens two new cards in one month will almost always see the average account age drop; depending on the rest of their file, that can cause a one-time score dip.
  • Old accounts matter: in my work advising homebuyers, I’ve seen older cards and decade-long installment loans preserve high scores and unlock better mortgage pricing—even when utilization or mix was comparable to peers.

Who is most affected

  • New credit users: younger consumers or recent immigrants with few accounts will see meaningful score gains as accounts age.
  • Borrowers with short profiles: someone who built credit quickly by opening many accounts may be penalized by a low average age despite good payment behavior.

Practical strategies (what to do)

  • Keep unused but paid-off cards open: unless a card has high fees or fraud risk, an old open account helps your average age. Consider placing it in a secure wallet and use it for a small recurring charge to keep it active.
  • Space out new accounts: limit new credit applications to what you need. Multiple hard inquiries and recently opened accounts compound the short-term hit.
  • Avoid closing oldest accounts just to “clean up” your wallet: closing a long-standing card can shorten your visible history and lower your score. If you must close, do it selectively and understand the tradeoff.
  • Use authorized-user staging cautiously: being added as an authorized user on a long-standing account can transfer the account’s age benefit, but results vary by issuer and scoring model.
  • Monitor and be patient: account-age benefits accrue slowly—expect steady, incremental improvements rather than quick fixes.

Common mistakes and misconceptions

  • “I closed the card so it won’t count anymore”: closing a positive account usually remains on your report for up to 10 years and still affects average age; the immediate effect is often from the removal of available credit and a shortened average age once the report updates.
  • Focusing only on age: account age is one of several factors. Payment history and credit usage typically matter more in the short term.
  • Expecting immediate reversal: because age is cumulative, you can’t quickly “age” accounts—time is the only reliable remedy.

Related resources

Frequently asked questions

  • Does closing an old credit card always hurt my score?
    Not always, but it can. If it’s your oldest account or it meaningfully reduces your average account age or available credit, a decline is likely.

  • How long until a new account stops hurting my score?
    The largest impact is usually in the first months after opening. The negative effect lessens as the account ages—meaningful recovery often takes 12–24 months, and full benefit accumulates over years.

Professional disclaimer

This content is for educational purposes and does not replace personalized financial or credit counseling. For advice tailored to your situation, consult a certified credit counselor or financial advisor.

Authoritative sources

In my practice I recommend tracking changes after any new account or closure and prioritizing steady habits—on-time payments, low utilization and patience—because age helps, but it compounds best alongside strong credit behavior.