Economics · Banking and Finance
Why is the length of credit history important in determining a borrower's credit score?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Closing old or inactive accounts improves the overall length of credit history and credit score.
- 2The length of credit history has no impact whatsoever on the credit score calculation.
- 3Shorter credit histories are better because they represent a lower risk profile.
- 4Longer credit histories generally provide more data on repayment behavior, leading to a better credit score.✓
Correct answer
Longer credit histories generally provide more data on repayment behavior, leading to a better credit score.
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