Credit Age Explained — It's 3rd Grade Math

• The older your age the better your score.
• Credit Age is a very basic math formula.
• Less than 2 Years NOT GOOD, 2–5 Years OKAY, 5–7 Years PRETTY GOOD, 8+ Years EXCELLENT.
• Add up the age of each open account and divide the total by the number of accounts.

How to Get and Keep a Good Credit Age

• If you are a renter, consider 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 — 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 with a zero balance.
• You 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, losing all the points you had gained.

Oops, I Opened Too Many New Accounts! What's Next?

• Call each company and close the new accounts.
• If you have a credit builder account, CANCEL it and get your money back.

Why Is Rent Reporting a Big Help?

• Because you are reporting all of your past history and it is not a new account!
• Rent is the fastest way to improve your credit score, and it reports in days not months.