Tips for Increasing Your Credit History Length

Quick answer

• Open a new credit account and keep it open for the long term.
• Become an authorized user on a trusted person’s well-managed credit card.
• Use existing credit accounts responsibly and consistently.
• Avoid closing old, unused credit accounts.
• Pay all bills on time, every time.
• Monitor your credit reports regularly for accuracy.

Who this is for

• Individuals who are new to credit and want to build a strong foundation.
• People who have had limited credit activity and want to improve their credit score.
• Consumers looking to understand how to leverage their existing credit accounts for long-term benefit.

What to check first (before you act)

Goal and timeline

Before making any changes, clarify what you hope to achieve and by when. Are you aiming to qualify for a mortgage in a few years, or simply improve your credit standing generally? Your timeline will influence the urgency and type of actions you take. For example, a short-term goal might focus on immediate credit score improvements, while a long-term goal emphasizes sustainable credit history growth.

Current cash flow

Understand your income and expenses. This is crucial because responsible credit management relies on your ability to make payments on time. If your budget is tight, taking on new credit might be risky. Ensure you have a clear picture of where your money goes before considering new credit products or strategies.

Emergency fund or safety buffer

Do you have savings to cover unexpected expenses? A robust emergency fund (typically 3-6 months of living expenses) provides a safety net. This prevents you from relying on credit cards for emergencies, which can lead to debt and missed payments, negatively impacting your credit history.

Debt and interest rates

Assess any outstanding debts you currently have. High-interest debt can be a significant drain on your finances and make it harder to manage credit responsibly. Prioritizing paying down high-interest debt can free up cash flow and reduce the temptation to overspend.

Credit impact

Understand how various actions might affect your credit. Opening new accounts can temporarily lower your score, while closing old accounts can shorten your credit history length. Familiarize yourself with these general principles to make informed decisions.

Step-by-step (simple workflow)

Step 1: Review Your Current Credit Reports

What to do: Obtain free copies of your credit reports from AnnualCreditReport.com. Check for any errors, inaccuracies, or fraudulent activity.
What “good” looks like: Your reports accurately reflect your credit history, with no accounts you don’t recognize.
A common mistake and how to avoid it: Not checking reports regularly. Avoid this by setting a calendar reminder to check your reports at least once a year.

Step 2: Identify Oldest Accounts

What to do: Look at your credit reports to find your oldest active credit accounts. Note their opening dates.
What “good” looks like: You have at least one credit account that has been open for several years.
A common mistake and how to avoid it: Closing old accounts prematurely. Avoid this by understanding that older accounts contribute positively to your credit history length.

Step 3: Strategize About Account Closures

What to do: Avoid closing old, unused credit cards if they don’t have annual fees. If they do have fees, consider if the fee outweighs the benefit of keeping the account open for history length.
What “good” looks like: You’ve decided to keep your oldest accounts open, especially if they are in good standing and have no fees.
A common mistake and how to avoid it: Closing accounts solely to “clean up” your credit. This can shorten your average account age, a key factor in credit history length.

Step 4: Consider Becoming an Authorized User

What to do: Ask a trusted friend or family member with excellent credit to add you as an authorized user on their long-standing credit card.
What “good” looks like: The primary cardholder has a history of on-time payments and low credit utilization on that account.
A common mistake and how to avoid it: Becoming an authorized user on an account with poor payment history. Avoid this by ensuring the primary cardholder is financially responsible.

Step 5: Open a New, Long-Term Account (If Needed)

What to do: If you have a very thin credit file, consider opening a new credit card with a low credit limit or a secured credit card.
What “good” looks like: You choose an account with no annual fee and commit to using it sparingly and responsibly for the long haul.
A common mistake and how to avoid it: Opening multiple new accounts in a short period. This can lead to multiple hard inquiries and a drop in your credit score.

Step 6: Use Existing Credit Responsibly

What to do: Make small, planned purchases on your credit cards and pay them off in full each month.
What “good” looks like: You consistently use a small portion of your available credit and pay the statement balance by the due date.
A common mistake and how to avoid it: Maxing out credit cards or carrying high balances. This increases your credit utilization ratio, which can negatively impact your score.

Step 7: Pay All Bills On Time

What to do: Set up automatic payments for at least the minimum amount due on all your credit accounts.
What “good” looks like: Every payment is made on or before the due date, without exception.
A common mistake and how to avoid it: Missing payment due dates, even by a few days. Avoid this by using payment reminders or auto-pay.

Step 8: Maintain Account Activity

What to do: Make a small, recurring purchase on older, unused credit cards (e.g., a subscription service) and pay it off immediately.
What “good” looks like: Your accounts show occasional, responsible activity, preventing them from being closed by the issuer due to inactivity.
A common mistake and how to avoid it: Letting accounts go dormant for too long. This can lead to the issuer closing the account, shortening your credit history.

Step 9: Monitor Your Credit Regularly

What to do: Periodically review your credit reports and scores to track progress and catch any new issues.
What “good” looks like: You are aware of your credit standing and can identify any changes or potential problems early.
A common mistake and how to avoid it: Forgetting to monitor. Avoid this by making it a habit, perhaps quarterly, alongside other financial check-ins.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Closing old, unused credit accounts	Shortens average age of credit history, potentially lowering your credit score.	Keep old accounts open, especially if they have no annual fee and are in good standing.
Opening too many new accounts at once	Multiple hard inquiries can temporarily lower your credit score.	Space out new account applications over time.
Missing payment due dates	Late payment marks significantly damage your credit score and history.	Set up automatic payments for at least the minimum amount due.
Carrying high credit card balances	High credit utilization ratio negatively impacts your credit score.	Aim to keep your credit utilization below 30%, ideally below 10%. Pay down balances aggressively.
Not checking credit reports for errors	Inaccurate information can unfairly lower your credit score.	Obtain and review your free credit reports annually from AnnualCreditReport.com.
Becoming an authorized user on a bad account	The primary cardholder’s poor habits can negatively impact your credit.	Only agree to this if the primary cardholder has excellent credit and a strong payment history.
Ignoring accounts with annual fees	Fees can outweigh the benefit of keeping an account open if not used.	Evaluate if the fee is justified by the account’s benefits or if closing it is a better option.
Not using credit at all	A lack of credit activity means no credit history to evaluate.	Use credit sparingly for small purchases and pay them off in full to build a positive history.
Relying solely on one credit account	Limits the positive impact of multiple, well-managed accounts.	Diversify your credit mix over time with responsible use of different credit types (if appropriate).
Not understanding authorized user impact	You may not realize how the primary user’s actions affect your credit.	Discuss expectations and responsibilities clearly with the primary cardholder beforehand.

Decision rules (simple if/then)

• If your oldest credit account is less than 3 years old, then consider becoming an authorized user on a trusted person’s older account because this can help establish a longer average account age.
• If you have a credit card with an annual fee that you rarely use, then evaluate if the fee is worth the benefit of keeping the account open for credit history length because closing it might be better if the fee is high.
• If you are considering opening a new credit card, then choose one with no annual fee and a low credit limit if your credit history is thin because this minimizes risk while still allowing you to build history.
• If you have a credit card that has been open for many years and is in good standing, then do not close it because older accounts are valuable for increasing your average credit history length.
• If you are struggling to remember payment due dates, then set up automatic payments for at least the minimum balance because this prevents late fees and negative marks on your credit report.
• If you notice an error on your credit report, then dispute it immediately with the credit bureau because incorrect information can lower your credit score.
• If you want to increase your credit history length quickly, then focus on responsible use of existing accounts and becoming an authorized user because opening many new accounts can have a short-term negative impact.
• If you are considering closing a credit card, then check if it’s your oldest account because closing your oldest account can significantly reduce your average credit history length.
• If you are using a credit card for everyday purchases, then pay the statement balance in full each month because this keeps your credit utilization low and avoids interest charges.
• If you are an authorized user, then ensure the primary cardholder continues to manage the account responsibly because their actions directly impact your credit history.

FAQ

How long does it take to increase credit history length?

Increasing your credit history length is a long-term endeavor. The most significant impact comes from keeping accounts open and active for many years. While becoming an authorized user or opening a new account can help immediately, the real growth happens over time.

Will closing an old credit card hurt my credit history length?

Yes, closing an old credit card account can reduce your average age of credit history. This is because the date the account was opened is no longer factored into your average, and the account may eventually fall off your report entirely.

What is the difference between credit history length and credit utilization?

Credit history length refers to how long your accounts have been open, on average. Credit utilization is the amount of credit you are using compared to your total available credit. Both are important factors in your credit score.

Can becoming an authorized user help my credit history length?

Yes, if the primary cardholder has an older, well-managed account, becoming an authorized user can add that account’s history to yours, effectively increasing your average credit history length. However, the primary user’s payment behavior is key.

Should I open a new credit card just to increase my history length?

Opening a new card can help if you have a very limited credit history. However, it’s best to do so strategically, choosing a card with no annual fee and committing to using it responsibly for the long term, rather than opening many new accounts.

How does paying off debt affect credit history length?

Paying off debt primarily impacts your credit utilization and payment history, which are crucial for your credit score. While it doesn’t directly increase your history length, it supports responsible credit management, which is essential for long-term credit health.

What if I don’t have any old credit accounts?

If you have a thin credit file, focus on building a positive history with new, responsible credit. Consider a secured credit card or becoming an authorized user on a trusted person’s account. Consistency and time are key.

Does a secured credit card help with history length?

Yes, a secured credit card can help build your credit history length. Once opened and used responsibly, it starts contributing to your credit age. The key is to use it consistently and pay it off on time.

What this page does NOT cover (and where to go next)

• Specific credit card product recommendations.
• Detailed explanations of credit scoring models (e.g., FICO, VantageScore).
• Strategies for dealing with collections or severely damaged credit.
• In-depth advice on managing multiple types of debt simultaneously.
• Legal rights and protections related to credit reporting.