The Benefits of Maintaining a Long Credit History for Your FICO Score

21 June 2025

When it comes to credit scores, one factor often overlooked is the length of your credit history. We all focus on making payments on time and keeping our credit utilization low—but did you know that the age of your credit accounts can significantly impact your FICO score?

A long credit history tells lenders a story—it shows them you're responsible, reliable, and experienced with managing debt. But how exactly does it affect your credit score? And why should you care? Let's dive deep into the benefits of maintaining a long credit history and how it can work in your favor.

Understanding the Importance of a Long Credit History

Your credit history is like a financial resume. The longer you've been managing credit responsibly, the more trustworthy you appear to lenders. Credit bureaus assess your credit history as part of your FICO score calculation, and believe it or not, this factor alone can make up 15% of your total score.

Even though it’s not as heavily weighted as payment history (35%) or credit utilization (30%), it still plays a crucial role in giving lenders confidence in your ability to manage credit effectively.

How Is Credit History Length Calculated?

FICO considers several aspects when evaluating your credit history length:

- The age of your oldest account – The longer you've had an account open, the better.
- The average age of all your accounts – Too many newly opened accounts can bring this number down.
- The age of your newest account – A recently opened account lowers your credit history average.

So, keeping older accounts open and in good standing can help boost your score over time.

Key Benefits of Maintaining a Long Credit History

1. Higher FICO Score = Better Loan Terms

A long, well-maintained credit history can push your credit score higher, which means better interest rates when you apply for loans. Lenders love stability, and if they see you've been managing credit responsibly for years, you’ll likely get approved for loans, credit cards, mortgages, and even car leases with lower interest rates.

Imagine getting a car loan with a 3% interest rate instead of 8%—that could save you thousands over the life of the loan!

2. Easier Approval for Credit and Loans

Getting approved for a credit card or loan isn’t just about your income or debt-to-income ratio. Lenders want to know you have a strong, consistent credit history. A long-standing credit history proves you have experience handling credit, which makes you a lower-risk borrower.

If you’ve been using credit wisely for 10+ years, lenders will be far more likely to approve your applications compared to someone who just started building credit a year ago.

3. Improved Credit Utilization Ratio

Credit utilization refers to the percentage of your available credit that you’re using. A longer credit history often means access to higher credit limits, which, if managed correctly, leads to a healthier credit utilization ratio.

Example: If you have an old credit card with a $10,000 limit but only use $1,000, your credit utilization is just 10%—which is fantastic for your score!

Keeping your old accounts open (instead of closing them) helps maintain this low utilization percentage, further benefiting your FICO score.

4. Stronger Credit Profile for Renting or Employment

Landlords and even some employers check credit scores before approving lease agreements or hiring decisions. A long credit history indicates financial responsibility, proving to landlords that you’re less likely to miss rent payments.

For jobs that require handling money or financial data, a strong credit history can make you a more attractive candidate. Employers see financial responsibility as a marker of trustworthiness and stability.

5. Higher Credit Limits and Better Credit Card Rewards

If you’ve been a loyal, responsible credit card user for years, your credit card issuer is more likely to increase your credit limit. Why does this matter?

- It reduces credit utilization.
- It increases purchasing power.
- It gives you access to better rewards programs.

Many premium credit cards with top-tier rewards (cashback, travel perks, etc.) require excellent credit, which is easier to achieve when you maintain a long and positive credit history.

Common Mistakes That Can Shorten Your Credit History

1. Closing Old Credit Accounts

One of the worst things you can do is close an old credit card account, especially one with a good payment history. Once closed, that account eventually falls off your credit report, reducing your average account age and potentially lowering your score.

Instead, keep old accounts open—even if you don’t use them regularly. Consider setting up small, recurring charges to keep them active.

2. Opening Too Many New Accounts at Once

Every time you apply for new credit, a hard inquiry is added to your credit report, slightly lowering your score. If you open multiple new accounts in a short period, your average credit age decreases, making you appear risky to lenders.

3. Ignoring Dormant Accounts

If you have a credit card with no balance and haven’t used it in years, some banks might close it due to inactivity. This will negatively impact your credit history length. To prevent this, make a small purchase every few months to keep the account active.

How to Maintain a Long, Healthy Credit History

Keeping your credit history strong doesn’t require rocket science! Here are some simple steps to ensure it works in your favor:

- Keep old credit accounts open – Unless the card has high fees, keeping your oldest account open is smart.
- Use your credit regularly – Even if it’s just for small purchases, maintaining active accounts helps.
- Be patient – A good credit history takes time to build, but the longer you have it, the better it gets!
- Limit unnecessary new accounts – Only open new credit lines when necessary to avoid lowering your average account age.

By following these habits, you’ll ensure your credit history remains an asset to your financial well-being.

Final Thoughts

A long credit history is one of the secret weapons to maintaining a strong FICO score. It fosters trust with lenders, gives you access to better financial opportunities, and ultimately makes life easier when it comes to loans, credit approvals, and even job prospects.

The earlier you start building your credit history, the better off you’ll be in the long run. So, don’t close those old accounts, use credit wisely, and watch your score soar!