Sentences with phrase «shorter average account age»
A shorter average account age can hurt your score.
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Not only does closing the card do nothing to remove either the inquiry or new account that left your score lower, closing it won't prevent the card's very short credit history from unfavorably impacting the scoring calculations — average account age, oldest and newest account age, for example — that make up the length of credit history scoring category (about 15 percent of your score).
Drawbacks of More Credit Cards: While it's true that in the long term opening up a new credit card can help you to build credit, in the short term it will decrease your average account age, a factor used when calculating your credit score — with older being better in the eyes of card issuers.
This means that you want to keep your oldest credit cards, since they help lengthen your average age of accounts and counterbalance the negative effect of closing cards you've only had a short time.