20% of your Vantage Score and 15% of your FICO Score is tied to your credit age
The older your age the better your score
Credit Age is a very basic math formula
Add up the age of each open account and divide the total by the number of accountsExample: 4 Accounts 1) 6 Years 2) 2 Years 3) 6 Months 4) 6 Months ► Total 9 years divide by 4 = 2.25 Years Credit Age
Less than 2 Years NOT GOOD, 2-5 Years OKAY, 5-7 Years PRETTY GOOD, 8+ Years EXCELLENT
How to get and keep a good Credit Age?
If you are a renter, considering adding your rent to your credit report all the way back to when you moved in!
Do NOT open more than 1 new account in a year as this will quickly drop your Credit Age and your credit score
Ask an older family member or friend to add you as an authorized user to a very old credit card they have that has a zero balanceYou will inherit the credit age from that card. It can make a big impact and keep you away from Predatory Lenders
The Dirty Little Secrets
When you pay off a car loan, all that age and payment history is marked as paid and closed.
Instead of being rewarded for paying off a car loan. You are actually penalized.
This will cause your Credit Score to drop, loosing all the points you had gained
