Length Of Time Accounts Have Been Established: What Does It Mean?

Last Updated: Dec 30, 2022

Adverse action notices must be provided by creditors when they reject a loan application.

Learn how “Length of time accounts have been established” reason code will affect your credit score.

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Credit scores are heavily influenced by the age of your credit accounts and the overall quality of your credit history. A long history where credit payments are made in full and on time will help you build an impeccable credit score.

What Is The Meaning Of “Length Of Time Accounts Have Been Established”?

If you get “length of time accounts have been established” as a reason code in an adverse action notice, it means your credit history is too short for creditors to take the risk of approving the credit you have applied for.

How The Length Of Time Accounts Have Been Established Impacts Your Credit Score?

A short credit history keeps a credit score low, and influences whether applications for long term loan or credit will be approved.

The age of your credit history refers to the length of time accounts appear in your credit reports. When determining the your credit score, the age related metrics used to calculate this include:

  • Age of oldest account on report,
  • Average age of all accounts on report, and
  • Time period since last account has been opened.

Order a credit report from the big three credit reporting companies (Equifax, Experian and TransUnion) to check your credit history.

Bottom Line

Credit applications from people with short or insubstantial credit histories might be declined due to “length of time accounts have been established”. Make payments on time and allow accounts to mature to increase your credit score; and neutralize this as a reason for denying your application for higher sums and longer term loans.

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