December 5th, 2012
Last time, we talked about how your percentage of on-time payments affects your credit. Before that, it was all about your open credit card utilization and how a high percentage can really ding your score. Today, we’re discussing another factor in your Credit Report Card: your average age of open credit lines.
Your credit history says a lot about you as a borrower. Of course, there’s whether or not you’ve made payments on time, but there’s also just how long your history is. In Credit Karma’s Credit Report Card, we take a look at the average age of your open credit lines, since many scoring models weigh newer credit lines more heavily.
How does my credit history length affect my credit?
Your credit history length is a significant factor in your credit score. Based on that, the average age of your credit cards is a strong indicator of your credit history. Basically, the longer that you’ve responsibly managed credit (like credit cards), the higher your credit score. Lenders and creditors can get a more thorough and accurate evaluation of your creditworthiness by looking at years and years of your credit use.
This is reflected in the score comparison charts you’ll see in your Credit Report Card.
November 6th, 2012
Last week we covered open credit card utilization. This week, we’re talking about another important factor of your credit score: your percentage of on-time payments. This percentage shows lenders how often you pay your bills on time. A percentage even slightly less than 100 percent can mean trouble for your credit score.
October 31st, 2012
The first item listed in your Credit Report Card is your open credit card utilization. This factor greatly impacts your credit score. Your open credit card utilization is the percentage of your credit limits that you’re using at any given time. It can be calculated by dividing your credit card balances by your credit limits. It’s a metric used by most credit score models to help assess your creditworthiness.
October 22nd, 2012
Earlier this year on the blog we presented The Ultimate Guide to Credit Karma to tell you all about Credit Karma’s features and how to best use them to monitor and improve your credit health. We started with the Credit Report Card, which was created to help you better understand the factors influencing your credit score. Then, we realized there was a lot more to tell.