This article was originally published on March 25, 2025, and was updated as of January 26, 2026 to reflect timely information.
Key takeaways about credit history
Your credit history is one of the factors that influences your credit score.
How long you’ve had credit, and how consistently you’ve managed it, matters.
A longer, well-maintained credit history supports stronger overall credit health.
Keeping older accounts open can help preserve the length and strength of your credit profile.
We hear a lot about age being a disadvantage in certain areas of life. But when it comes to your credit, age is a good thing.
Your credit history reflects how long you’ve been using credit and how responsibly you’ve managed it over time. Lenders use this information to understand patterns, not just moments. The longer and more consistent your track record, the more confidence it creates.
So what does credit history actually measure, and how can you use it to your advantage? Let’s break it down.
Why credit history matters to your credit score?
When lenders review your credit report, they are looking for stability. They want to see how you’ve handled credit across time, not just whether you paid one bill last month.
The length of your credit history accounts for about 15% of your FICO® score. While that’s smaller than payment history or credit utilization, it still plays a meaningful role in how your overall credit profile is evaluated.
Your Your credit report includes:
The age of your oldest account – older accounts show long-term experience with credit.
The average age of all accounts – a higher average signals consistency.
Account activity over time – even accounts you don’t use often still contribute.
The takeaway is simple. A longer history of responsible credit use builds trust with lenders.
With the right strategy, expert guidance, and smart financial habits, you can build a credit history that opens doors to financial freedom.
Why keep old credit accounts open?
It’s common to think that closing an old credit card you rarely use is a smart cleanup move. In reality, closing older accounts can work against you.
Here’s why:
It shortens your credit history
When an older account is closed, it eventually stops contributing to your average account age. If your profile is already thin, that change can be noticeable.
It can raise your credit utilization
Credit utilization looks at how much credit you’re using compared to how much you have available. Closing an account reduces your total available credit, which can make your balances look higher by comparison.
It removes positive history over time
Accounts with long, on-time payment histories help your score. Once closed, those benefits fade as the account ages off your report.
Unless an account carries high fees or creates a temptation to overspend, keeping older accounts open, even with minimal use, often supports stronger credit health.
What if you don’t have much credit history?
If you’re early in your credit journey or have limited accounts, building history can feel challenging. Credit history matters, but you need credit to create it.
There are practical, responsible ways to get started:
Become an authorized user
Being added to a well-managed, long-standing account can allow positive history to appear on your credit report.
Open a secured credit card
These cards use a refundable deposit as your limit and are designed to help establish positive patterns.
Use a credit-builder loan
Small installment loans can help demonstrate consistent payment behavior while building history.
Report recurring payments
Some services allow rent, utilities, or subscription payments to be reported, adding depth to your profile.
The goal is not to add accounts quickly, but to build steady, manageable history that grows over time.
How to maintain a strong credit history?
Once you’ve built a foundation, consistency is what keeps it strong.
Pay on time, every time
Payment history is the largest factor in your score. Automating payments or setting reminders helps protect it.
Keep balances low
Try to use less than 30% of your available credit. Lower utilization supports both short- and long-term credit health.
Avoid closing older accounts unnecessarily
Length and availability matter more than people often realize.
Monitor your credit regularly
Checking your reports helps you catch errors or unfamiliar activity before they cause damage.
What if you’ve made mistakes in the past?
Late payments, collections, or high balances don’t define your financial future. Credit history evolves, and improvement is possible with the right guidance and plan.
With nonprofit credit counseling, consumers can:
Understand what’s actually affecting their credit
Create a realistic action plan based on their situation
Address past issues with clarity and structure
Build habits that support lasting progress
Improving credit history is less about quick fixes and more about informed, steady steps forward.
Building better credit history starts with clarity
Your credit history tells a story. Every payment, balance decision, and account over time adds to it.
Whether you’re just getting started, maintaining strong credit, or working through past challenges, understanding how credit history works puts you in control. With the right information and consistent habits, your credit profile can continue moving in the right direction.
And that progress adds up. Take the next step today! Connect with a certified credit counselor and start improving your credit history the right way!
