How Age of Credit Accounts Boosts or Damages Credit

7 November 2025

Your credit score is like a financial report card, and one of the key factors influencing it is the age of your credit accounts. But how exactly does this impact your score? Can having old accounts help, or could it actually hurt you?

If you've ever wondered how the length of your credit history shapes your creditworthiness, you're in the right place. Let's break it down in a simple, conversational way.

Why Does the Age of Credit Accounts Matter?

Lenders want to know how well you handle credit, and one of the best ways to gauge that is by looking at how long you’ve had your accounts. The older your credit history, the more data they have to assess your financial behavior.

Credit scoring models like FICO and VantageScore consider the age of your credit accounts when calculating your score. While it might not carry as much weight as factors like payment history or credit utilization, it still plays a significant role in determining your overall credit health.

How Age of Credit Accounts Boosts Your Credit

The age of your credit accounts can positively impact your credit score in several ways. Here’s why:

1. Longer Credit History Shows Stability

Imagine you’re hiring someone for a job. Would you prefer a candidate with years of experience or someone brand new to the field? Lenders think the same way about your credit history.

A long-standing credit account suggests responsibility and reliability. If you’ve had the same credit card for 10+ years and managed it well, it signals to lenders that you’re financially stable.

2. Higher Average Age of Accounts Improves Credit Score

Credit scoring models calculate the average age of your accounts. This means that the longer your oldest accounts have been open, the better your score could be.

For example, if you have:
- A credit card that’s 12 years old
- A car loan that’s 5 years old
- A student loan that’s 8 years old

Your average age of credit would be around 8.3 years. The older your average credit age, the higher your credit score is likely to be.

3. Older Accounts Provide a Stronger Credit Profile

Having long-standing credit accounts on your report strengthens your overall financial profile. This can make it easier to:
- Qualify for new credit cards
- Secure loans with lower interest rates
- Get approved for mortgages and car loans

Lenders trust borrowers with a solid credit history because they’ve demonstrated they can manage accounts over time.

4. Helps Offset Newer Accounts

If you've recently opened a new credit card or taken out a loan, your credit score might temporarily dip. However, having older accounts in good standing can balance out the impact of newer accounts, keeping your credit score healthy.

How Age of Credit Accounts Can Damage Your Credit

While having older credit accounts is great for your score, certain actions can hurt you when it comes to the length of your credit history.

1. Closing Old Accounts Can Lower Your Score

One of the biggest mistakes people make is closing old credit accounts. You might think canceling a paid-off credit card is a smart move, but it can actually damage your credit score.

Why? Because when you close an account, it lowers the average age of your credit history. Since the scoring formula values older accounts, shutting them down can shrink your credit age and slightly lower your score.

Example:

Let’s say you have three credit cards:
- One that’s 12 years old
- One that’s 5 years old
- A new one that’s 1 year old

Your average credit age is 6 years. But if you close the oldest card, your average drops dramatically – and so does your score.

2. Opening Too Many New Accounts at Once

Each time you open a new credit account, it lowers your average credit age. If you apply for multiple credit cards in a short period, you might see a drop in your score.

Lenders view this as a red flag because it looks like you’re suddenly desperate for credit. This could make them hesitant to lend to you, especially if your history isn’t very long to begin with.

3. Credit Inactivity Can Lead to Account Closures

Did you know that credit card issuers can close your account if you don’t use it for a long time? If your oldest credit account gets closed due to inactivity, your credit history will take a hit.

To prevent this, consider using your old credit cards for small purchases every few months and paying them off in full. This keeps the account active and maintains your credit age.

How to Use Credit Age to Your Advantage

Now that you know how credit age works, here are some smart strategies to keep your score strong:

✅ Keep Old Accounts Open Whenever Possible

Even if you don’t use an old credit card frequently, try to keep it open (as long as it has no annual fee). This will help maintain your credit age and boost your score.

✅ Only Open New Accounts When Necessary

Avoid applying for multiple credit cards or loans within a short period. While it’s okay to get a new credit card now and then, too many new accounts can lower your average credit age.

✅ Use Old Credit Cards Occasionally

To avoid inactive account closures, make small purchases with your older credit cards every few months. Even buying a cup of coffee and paying it off can keep the account active.

✅ Be Mindful of Closing Accounts with History

If you must close a credit account, consider its impact on your credit age. If it’s one of your oldest accounts, keeping it open could be more beneficial.

Final Thoughts

The age of your credit accounts plays a crucial role in shaping your credit score. Older accounts can boost your score by showing stability and increasing your average credit age. On the other hand, closing old accounts or opening too many new ones can damage your credit history.

By managing your accounts wisely, keeping old ones open, and pacing new credit applications, you can ensure that your credit age works in your favor.

Managing credit is like growing a tree – the longer it stands, the stronger its roots. Keep nurturing your credit history, and your financial future will thrive!