In detail
Length of credit history is one of several factors that credit-scoring models consider when evaluating a consumer's credit report. It is not a single number but a category built from several related measurements. These include the age of the oldest account on the report, the age of the newest account, the average age of all accounts, and sometimes the age of specific types of accounts such as revolving or installment accounts. Credit-scoring models may also look at how long it has been since an account was opened or since an account was used. These measurements are derived from dates reported by lenders and other data furnishers to the national credit reporting companies. The length of credit history factor is distinct from a consumer's credit score. A credit score is a numerical summary calculated by a scoring model, while length of credit history is an input to that calculation. Because the factor depends on the passage of time and on the dates reported by creditors, it changes slowly. A consumer who has held accounts for many years will generally have a longer length of credit history than a consumer who has only recently opened their first accounts. However, scoring models vary in how much weight they give to this factor. For example, FICO and VantageScore, which are separate scoring model developers, each publish general descriptions of the factors they consider, including length of credit history. Under the Fair Credit Reporting Act, consumers have the right to dispute inaccurate information in their credit reports, including incorrect account open dates that could affect this factor. Consumers may also obtain their reports from the national credit reporting companies to review the dates associated with their accounts. The length of credit history factor is not a measure of financial responsibility or income; it is simply a record of how long credit accounts have been established and reported.