The Credit Challenge » credit history http://www.thecreditchallenge.com/blog Fix Your Credit Score, Improving Your Credit Score Fri, 15 Aug 2008 19:29:26 +0000 en hourly 1 http://wordpress.org/?v=3.0 The Older The Credit Account, The Better For Your Credit Score http://www.thecreditchallenge.com/blog/the-older-the-credit-account-the-better-for-your-crediut-score http://www.thecreditchallenge.com/blog/the-older-the-credit-account-the-better-for-your-crediut-score#comments Mon, 02 Jun 2008 17:08:54 +0000 Alex Navas http://www.thecreditchallenge.com/blog/?p=23

Did you know that the older the credit account is, the better it is for your credit score?  It’s true. Fifteen percent of your credit score  is determined by the length of your credit history.

Knowing this fact is

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Did you know that the older the credit account is, the better it is for your credit score?  It’s true. Fifteen percent of your credit score  is determined by the length of your credit history.

Knowing this fact is contrary to what many people have heard; Closing your old accounts improves your credit score.  This is completely untrue, and you should stay away from it.

Imagine that you had a credit card since 2001 and you’ve never been late on it.  Then you decide that you rather close it out since you don’t use it very much any more.  The minute you close that account, you’ve just lost 7 years of good credit history. I’ve seen many people’s credit score drop 20-30 points simply by closing out one old account.

Make sure you keep your oldest accounts in good standings (just like your newer ones too!) because they will help keep your score up.  Fifteen percent can make a dramatic difference in your credit score over time.

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