WATERLOO – In the formulas that determine a credit score, how long you have had credit may seem to be a somewhat minor factor. That statement certainly sounds true for the FICO score, which counts this portion as 15 percent of your overall score.
However, for VantageScore your credit history is combined with the types of credit you have and is considered “highly influential.” Additionally, while 15 percent may not seem like all that much when it comes to your FICO score, it really is—15 percent of 700 is a little more than 100 points. And if you’re shooting for an 800 score, it represents a whopping 120 points. This factor is certain to be taken into consideration the next time you apply for credit, especially if your score is thin (meaning you don’t have a lot of information on your credit reports).
So, what does it all mean? Let’s dive in and see what we can uncover.