If you are thinking about your date of birth to answer this question, then you are in the wrong place. Your birth age doesn’t have anything to do with your personal credit score, but the age of your personal credit score does matter.
The age of your credit score starts counting when you first open your account, and it can have a positive or negative magnitude in your credit scores. Measuring the impact of the age of your credit score is the first step for credit score models. With a 15 – 20 year-old credit account, your personal profile will look good if the given account is recent.
There are some ways to make sure you get the best score available in the age group:
- Trying to get your old accounts deleted is not a good thing to do. Your old credits can help your score more than you think! Closing your previous accounts can even be suspicious for your personal credit reports. A fresh start doesn’t mean your background is useless!
- If this is the first time opening your account, don’t be afraid! Everyone has gone through this stage. Time flies and if you think that leaving this task for later on is the best alternative, it’s not! If you are starting your own business, then it is time you begin using credit.
- Be conscious when using your credit card. If you want to take advantage of Black Friday sales, think twice before using your credit card. The negative impact to your scores will cost you a lot in the long term. New accounts can diminish the age of all of your accounts, reducing your score when your credit isn’t appropriately utilized.
If you haven’t opened a personal credit account, it is time to do it. Your personal credit score is part of your submission process when applying for a small business loan, so you want to make sure you have some sort of personal credit history.