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New Visitor
Posts: 5
Registered: ‎04-04-2010
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What is a good credit length/history?

It says I have 2 years 2 month of credit history and my history is not good.  How long do I need credit history do Improve my score?

 

How does it break it down?

 

 

Not good = how many years?

Good history = how many years?

Great history = how many years?

 

 

Ty Again

N8:smileyhappy:

 

Frequent Contributor
Posts: 313
Registered: ‎06-26-2009
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Re: What is a good credit length/history?


N8TheGr8 wrote:

It says I have 2 years 2 month of credit history and my history is not good.  How long do I need credit history do Improve my score?

 

How does it break it down?

 

 

Not good = how many years?

Good history = how many years?

Great history = how many years?

 

 

Ty Again

N8:smileyhappy:

 


 

Hi N8 and welcome!

 

At the top of this board is a sticky named "Frequently Requested Threads". Read through these and you will have a good basic understanding of how all these things work. You will even learn a few things you didn't even know you wanted to know! :smileyhappy:

 

CB


Starting Score: EQ 618 TU 585
Current Score: EQ 680 TU 698 EX 681 (lender pull 04/2010)
Goal Score: EQ 720 TU 720


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Posts: 32,869
Registered: ‎08-04-2007
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Re: What is a good credit length/history?

To add, it's all in relation to "who". If your 2 yr, 2 mo. history is not good for you, it may be good for others. To muddle things more, your 2 yr history may be good one one report but bad on another. To really muddle things, 1 yr from now that history may turn to "good" but 8 yrs from now, when it is 10 yrs old, it may turn back to "not good".

 

Your FICO score is very complex. There are scoring buckets (aka scorecards) that allow you to be directly compared to others who have a similar looking report. So, you aren't directly compared to others with a 20 yr history; that wouldn't be fair. You are compared to others who have a similar looking report. It's proprietary, but I think there could be 12 different scorecards and you are placed in one of those. In relation to others with your type of report, most others have a history greater than 2 yrs.

 

BTW, I take it you are referring to the "Not Good" on your FICO report located next to "Length of Credit History"? More goes into that than you think. It's more than just a length of history, but it also factors in your oldest revolving, your oldest installment I think, your AAoA, and probably much more.

New Member
Posts: 2
Registered: ‎05-29-2011
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Re: What is a good credit length/history?

It's not just about "how long" your credit is per se but what's on there. No one knows for sure but this is a rough idea how your FICO score is calculated. If you're doing these things, then 2 years will be more than enough.

 

Past Payment History: This alone covers 35% of your credit score. Just one little late payment can affect your score dramatically. The most important thing is to always pay your bills on time. If you have a problem with this, you should consider setting up auto pay accounts, or start making more money.

Total Credit balance: This covers 30% of your overall credit score. This is the total amount you owe compared to your total credit limit. If you want a great credit score, you need to pay down your credit cards or credit lines to about 15% of your allowed credit. You can see a dramatic change just by making a large credit card payment.

 

Credit History: This is the length of time that you have established credit, and this accounts for 15% of your score. The longer you have been in good standings with a credit company, the better interest you will receive. Opening new accounts may actually hurt your overall credit score. Also, having idle accounts won’t help your score. You are better off using your card for gas or groceries, and then paying it off every month.


New Credit: The amount of credit that you apply for, accounts for 10% of your overall credit score. When you apply for credit, it is noted on your account as a “hard inquiry” and can be considered as a bad mark to future lenders if you have too many inquiries. Be sure that you have no more then 6-8 per year. Stop applying for credit you really don’t need. It will actually hurt your score.


Type of Credit: This accounts for 10% of your overall score. Credit cards, retail accounts, car loans, and mortgage loans are always being monitored. You need to be able to find the fine line between having too much credit, and not enough credit.

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