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Your “Length of Credit History” is considered when calculating your score. It’s not an overall calculation of how long you’ve had credit, rather a look at each individual account.
If you’re thinking of cancelling a credit card or a revolving account, think twice. Be certain that it’s absolutely necessary. Doing so will lower your score. Why? Because according to the bureaus, you’re lowering the average length for all accounts.
© 2008 CreditSkyRocket.com
It’s important to open accounts cautiously. You’ll build your credit a lot faster by opening different types of accounts, rather than just getting approved for a couple of credit cards. Even if you have all the money to pay for a car, consider financing just part of the purchase. Buying a computer? Think about the stores financing options.
When applying for large financed purchases, banks look at the proper management of different types of accounts and they’ll be more inclined to approve you.
© 2008 CreditSkyRocket.com
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