What It Means
Credit history is the record of how you've used credit over time, as it appears on your credit reportsCredit reportA record of how you've borrowed and repaid, kept by credit bureaus and sold to lenders, landlords, insurers and others who decide whether to deal with you. See more: the cards and loans you've opened, how long each has been open, how much you owe, and whether you paid on time. Lenders read it to judge how you're likely to handle a new loan. Credit scoresCredit scoreA three-digit number calculated from your credit report that lenders use to judge how likely you are to repay; common models run from 300 to 850. See more are calculated from it, and in a FICO ScoreFICO scoreA credit score made by the company FICO from your credit report; base FICO Scores, including the widely used FICO Score 8, run from 300 to 850. See more both payment historyPayment historyThe record in your credit reports of whether you paid each credit account on time, late or not at all; it's about 35% of a FICO Score. See more (35%) and the length of your credit history (15%) come straight from this record.
Try It: Follow One Card Through Fifteen Years
An example card, step by step. Timings come from the CFPB and Experian; the years are an example.
You open a credit card. It appears on your report as an open account, and its payment record starts building.
You pay one bill 30 days late. The late payment is added to the account's record.
You close the card. The account stays on your report as closed, with its full payment record.
Seven years after the late payment, it can no longer generally be reported. The rest of the account's record stays.
Ten years after you closed it, the account itself can drop off your report.
How People Say It
- "I don't have much credit history yet."
- "That late payment from college is still on my history."
- "The lender wanted a longer credit history."
The Breakdown
A short example. Jordan paid off and closed an old store cardStore credit cardA credit card offered by a retailer, either usable only at that store or co-branded with a card network, often with store discounts and a higher APR. See more years ago, and a 30-day late paymentLate paymentA payment that reaches the lender after its due date; on credit reports, one that's 30 days or more past due. See more from that card's first year is still on the record. Now Jordan is applying for a mortgageMortgageA loan used to buy or refinance a home, secured by the home itself and repaid in monthly installments over a set term. See more and assumes that closing the card erased both the account and the late payment.
Where it goes wrong. A closed account doesn't vanish when you close it. Experian says an account closed in good standing can stay on your report for up to 10 years, and any late payments on it drop off after seven. The CFPB says negative payment information can generally be reported for up to seven years, so the late mark leaves on its own timetable, whether or not the account is open.
What to watch for
| Item | How long it can generally stay |
|---|---|
| Late payment, defaultLoan defaultFailing to repay a loan as the contract requires, usually after missed payments, which lets the lender use stronger ways to collect. See more, repossession or foreclosure | Up to 7 years (CFPB) |
| Closed account in good standing | Up to 10 years (Experian) |
| Bankruptcy | Up to 10 years (CFPB) |
- Keep every account paid on time, since payment history is the largest part of a FICO Score, at 35%.
- Check that closed accounts are marked closed and that old late payments drop off when their time is up.
- If you're new to credit, a thin history is normal; it grows as your accounts age.
Good to Know
The CFPB says credit reporting companies can generally report negative payment information for up to seven years, and bankruptcies for up to 10. Positive information can stay longer: Experian says a closed account with a record of on-time payments can remain for up to 10 years, where it still counts toward the age of your accounts. Anything past its time limit that's still showing can be disputed with the bureau that lists it.
FAQ
How long does a late payment stay on my credit history?
Generally up to seven years, according to the CFPB. Experian says a late payment drops off after seven years even when the account it sits on stays longer.
Does closing a credit card erase its history?
No. Experian says a card closed in good standing can stay on your report for up to 10 years, with its payment record, and any late payments on it drop off after seven years.
How do I build a credit history from scratch?
A history starts once a creditor reports an account of yours to the credit bureaus, which build reports from what creditors send them. It then grows as that account ages and you keep paying on time.
Do It in Buhata
Bills, Reminders
With Plus, put every card and loan in Bills with its due date, so you see each payment coming before its due date.
Open BuhataRelated Terms and Categories
- Credit report
A record of how you've borrowed and repaid, kept by credit bureaus and sold to lenders, landlords, insurers and others who decide whether to deal with you.
- Length of credit history
How long you've been using credit, measured by the ages of your oldest, newest and average accounts; it makes up 15% of a FICO Score.
- Payment history
The record in your credit reports of whether you paid each credit account on time, late or not at all; it's about 35% of a FICO Score.
- Credit mix
The variety of credit types on your report, such as cards, retail accounts, installment loans and a mortgage; it makes up 10% of a FICO Score.
- Credit score
A three-digit number calculated from your credit report that lenders use to judge how likely you are to repay; common models run from 300 to 850.
- Late payment
A payment that reaches the lender after its due date; on credit reports, one that's 30 days or more past due.
Sources
Consumer Financial Protection Bureau, "What is a credit report?"; Consumer Financial Protection Bureau, "How long does information stay on my credit report?"; Consumer Financial Protection Bureau, "How long does a bankruptcy appear on credit reports?"; Experian, "How Long Do Closed Accounts Stay on Your Credit Report?"; Experian, "What Does 'Good Standing' Mean on My Credit Report?"; myFICO, "How are FICO Scores Calculated?"
- www.consumerfinance.gov/ask-cfpb/what-is-a-credit-report-en-309
- www.consumerfinance.gov/ask-cfpb/how-long-does-information-stay-on-my-credit-report-en-323
- www.consumerfinance.gov/ask-cfpb/how-long-does-a-bankruptcy-appear-on-credit-reports-en-325
- www.experian.com/blogs/ask-experian/when-are-closed-accounts-deleted
- www.experian.com/blogs/ask-experian/good-standing-mean-credit-report
- www.myfico.com/credit-education/whats-in-your-credit-score
Last updated .