There are a few main factors that make up the large algorithm that is a credit score. The age or credit history makes up about 15% of a credit score. When you look at FICO, they break up the tradelines category into three basic sections, including”
- How long a credit account has been open for
Is Age the Most Important Tradeline Factor
- How long a specific type of account has been open, which can include anything from installment accounts to revolving accounts
- How long it has been since those accounts were last used
Age Works In Conjunction With Your Payment History
Both age and payment history come together to make up about 35% of your overall credit score, making it one of the heaviest weighed parts of your score. So you might be thinking to yourself,
“Wouldn’t I need age in my account to have a good payment history?”
You are absolutely right. Plus, an account that has some age to it can also affect any payment history blemishes different. If you have just opened a credit account and you miss a payment, that missed payment can leave a huge dent in your credit score. However, once your account begins to age, the effect of one missed payment may end up getting covered up completely.
Now that you understand how big of an impact combined age and history can have on a credit score, it makes more sense that age is also a big factor for those who are considering purchasing tradelines.
Not All Age Levels Are Equal
Before you go out and begin buying old, aged tradelines, it is important to understand that there are very specific age-related factors that can play a major role when you are trying to calculate your credit score. There are many credit experts that believe certain age levels may have a greater or lesser effect on a credit score, even if the one with a lesser effect is a bit older.
You have to think of the positive effect of age as a larger series of jumps that happen throughout certain points of one’s credit history instead of age on an account that increases very gradually over time.
Why Does This All Matter?
All you really need to worry about is making sure you understand the importance of age when you are purchasing tradelines. We highly recommend checking out the FICO Score Estimator, as you can use it to better understand your own credit-related variables.
Because the time of an account is always attached to the payment history, you will be able to see the payment history of a tradeline before you purchase it. Think about it. Credit history represents about 15% of your credit score and payment history represents about 35%. Together, these equate to approximately half of your credit score, which is exactly why age is such an important factor.
Looking at the age threshold on a tradeline you are interested in will give you the assurance that you are making a positive decision for your credit!
