How long do the bureaus consider credit “new”?

Question by Cstorm: How long do the bureaus consider credit “new”?
Working on boosting my score a little (like everyone else in America, it seems) and let me tell ya … It’s as clear as a bell that ‘established’ credit is better than ‘new’ credit. But how long is ‘new’ credit ‘new’? I can’t even find a website that explains that. One site mentioned an average age of open accounts, but still… where’s the mark betwen good and bad? Is it 6 months? 12 months? A couple of years? Help!

I HATE not knowing! It’s keeping me up at night and my hair is falling out! (That part might not be ENTIRELY the credit bureaus’ fault…)

Best answer:

Answer by CreditCards.com
First, my hair is falling out, too. Second, RELAX!

I took a quick spin around FICO, the source of the most-commonly used credit scoring algorithm, and couldn’t find a specific answer.

But check these files out:
New credit accounts http://www.myfico.com/crediteducation/questions/credit-inquiry-help.aspx
discusses new credit.

and
http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx
discusses how new credit fits in with your overall score.

In short, it’s a really complicated formula that establishes the relationship between newness and your score; and it’s only a relatively small part of your score.

So rub on some Rogaine and take a nap.

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