Credit Age Definition | Business Credit Glossary

Definition

The length of a borrower's credit history, measured by the age of the oldest account, average age of all accounts, and age of the newest account, which influences credit scoring.

Explanation

Credit age — formally called "length of credit history" in FICO terminology — accounts for approximately 15% of a personal FICO score. It is measured three ways: the age of the oldest account in the credit file, the average age of all accounts, and the age of the most recently opened account. Older credit histories are associated with more predictable repayment behavior, so longer credit age contributes positively to scores. For personal credit, the average age of accounts is particularly sensitive to new account openings. When you open a new account, it lowers your average account age, which can temporarily reduce your score even though the new account itself is a positive addition. This is why opening multiple new accounts simultaneously can be counterproductive from a credit age perspective — each new account pulls down the average. For business credit, credit age influences Experian Business and Equifax Business scores. D&B's Paydex focuses primarily on payment timing and weights recent payment behavior heavily, so credit age is less dominant in Paydex than in personal credit models. For newer businesses, credit age is inherently limited — you can have a perfect payment record but still score lower than an older business simply because your file lacks the years of history that demonstrate sustained reliability.

Example

A business owner has two personal credit cards: one opened 8 years ago (oldest account) and one opened 1 year ago. Average account age is 4.5 years. If they open a third card, average age drops to about 3.0 years — a reduction that slightly lowers their FICO. This is why keeping old accounts open, even if rarely used, is generally advisable for credit age preservation.

Why It Matters

Credit age is the credit factor you have the least ability to actively improve in the short term — you simply cannot make your accounts older faster than time allows. The best strategies are preservation-focused: do not close old accounts, be cautious about opening many new accounts in a short period, and recognize that your business's age and the age of your oldest credit relationship are natural credit assets that compound over time.

Frequently asked questions

Will closing an old credit card hurt my credit score?

Closing an old credit card reduces your average account age and eliminates available credit (which increases utilization). Both effects are negative for your credit score. The older the card being closed, the more significant the impact on average account age. Unless a card carries an annual fee that is not justified by its benefits, keeping old cards open — even if you only make a small purchase monthly to keep the account active — is generally the right credit strategy.