Every new account starts at zero months old, whether it’s a lease, a loan, a card, or a credit-builder account. The day it opens, it pulls down your average account age — or the average age of accounts, according to scoring models.
Enter what’s already on your report to see how far it falls and how long it takes to climb back.
Why the effect on your score is mixed
- The average falls. Your oldest account doesn't move. Length of credit history looks at both, and the age of your oldest account is untouched by opening something new.
- The factor that drops is the smaller one. Length of credit history is worth about 15% of a FICO score. Payment history is 35%, and every on-time payment on the new account adds to that one, month after month.
- The gap never fully closes, and that's fine. Measured in months it stays the same size forever. Measured against a history that keeps getting longer, it matters less every year.
- Applying usually costs a few points of its own. A hard inquiry stays on your report for two years and stops affecting your score after about one. That's separate from the average-age dip shown here.
- Closing the account doesn't undo the work. A closed account in good standing stays on your report for up to 10 years and keeps counting toward your history the whole time.
Read more >> How Credit History Length Affects Your Credit Score
Frequently Asked Questions
Can you have a credit score of zero?
Do credit accounts build credit faster than loans?
How can I build my first credit score faster?
Disclaimer: The information provided in this blog post is meant for informational purposes only and does not constitute financial advice.
