Cultivate Length of Credit History (15%)

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1:23

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Money Monday credit score

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What happens here

This step details 'Length of Credit History,' which contributes 15% to your overall credit score. The speaker's primary advice for this component is to simply 'let time do its thing.' He draws a parallel to investing, where the power of compounding over time works to your advantage. There are no active steps required other than maintaining your credit accounts over a long period. The wooden block labeled '15% Length of Credit History' is then removed.

Goal: Allow credit accounts to mature over time to enhance the 'Length of Credit History' component.

Tools and materials

Hammer — Used as a prop to visually 'remove' the credit factor block
Wooden Block — Represents the 'Length of Credit History' component of the credit score
Credit History Records Credit Bureaus — Records of how long credit accounts have been open

What they say

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to have that payment. Absolutely not. It's only 10% of your credit score, just get one credit card and pay it off. 15% of your credit score is length of credit history. Just let time do its thing. That's it. Just let time compound, do its thing, just like investing. Anyways, let's move on. Now we're getting down to your last two big ones, credit utilization. Let's say your total overall spending limit is a thousand dollars. Keep it under 10% of that. Keep

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