How Age of Credit History Affects Your Score in Canada

Credit Score Fundamentals

How Age of Credit History Affects Your Score in Canada

Mar 20, 202622 min read

Understanding How Credit History Age Shapes Your Score

If you have ever checked your credit score and wondered why it is not climbing faster despite on-time payments and low balances, the answer may be hiding in plain sight: the age of your credit history. In Canada, credit scoring models used by Equifax and TransUnion weigh the length of your credit history as a significant factor, typically accounting for roughly 15 percent of your overall score. While that may sound modest compared to payment history at 35 percent or credit utilization at 30 percent, history age can be the difference between a score of 680 and a score of 740 — and that gap can cost or save you thousands of dollars in interest over the life of a mortgage or auto loan.

Many Canadians unknowingly damage their credit history length by closing old credit cards, opening too many new accounts at once, or failing to start building credit early enough. In this comprehensive guide, we will break down exactly how credit history age is calculated, what the two Canadian credit bureaus look at, and — most importantly — actionable strategies you can use right now to maximize this crucial scoring factor.

What Exactly Is “Age of Credit History”?

When credit scoring models like FICO Score 8 (used widely in Canada) or VantageScore evaluate your credit file, they look at several time-based metrics. Understanding each one is essential to making informed decisions about opening, closing, and managing your credit accounts.

Age of Your Oldest Account

This is the single account that has been open the longest on your credit report. For example, if you opened your first credit card in January 2015 and it is currently March 2026, your oldest account is approximately 11 years and 2 months old. This metric carries the most weight within the credit history age category because it establishes how long you have been participating in the credit system.

Lenders view a long-standing oldest account as a sign of stability. It suggests you have been managing credit responsibly over an extended period. Even if that oldest account is a basic no-fee credit card with a modest $1,000 limit, its existence on your report is invaluable.

Average Age of All Accounts

Your average account age is calculated by adding up the ages of all your open (and in some models, closed) accounts and dividing by the total number of accounts. Here is a simple example:

In this example, the total months across four accounts is 269, so the average age would be approximately 67 months, or about 5 years and 7 months. That is a solid average age. But watch what happens if this person opens two new accounts: the average drops significantly, which can negatively impact their score.

Age of Your Newest Account

Credit scoring models also look at how recently you opened your newest account. A very new account (under 6 months) can signal increased risk because new credit represents an unknown — the lender cannot yet see how you will manage it. This metric works alongside the number of recent hard inquiries to give lenders a picture of your recent credit-seeking behaviour.

How Canadian Credit Bureaus Calculate History Length

Canada’s two credit bureaus, Equifax Canada and TransUnion Canada, both track account opening dates and report them to the scoring models. However, there are some important nuances that set Canadian credit reporting apart from other countries.

Equifax and TransUnion may show different account ages for the same person because not all creditors report to both bureaus. A credit card from a smaller credit union might only appear on one bureau’s file, which means your oldest account — and therefore your average age — could differ between the two reports. Always check both bureaus to get the full picture.

How Long Closed Accounts Stay on Your Report

When you close a credit account in good standing (no missed payments, no collections), it does not immediately vanish from your credit report. In Canada, closed accounts with positive history typically remain on your report for varying lengths of time depending on the bureau:

This is crucial to understand because even after you close an old account, it continues contributing to your average account age for up to a decade. However, once it falls off your report entirely, your average age could drop suddenly — sometimes significantly enough to lower your score.

The Scoring Model Perspective

Both FICO and VantageScore models used in Canada treat credit history age as a spectrum rather than a pass-fail metric. There is no magic number where your score suddenly jumps. Instead, think of it as a continuum:

How Closing Old Accounts Damages Your Score

One of the most common credit mistakes Canadians make is closing an old credit card they no longer use. Perhaps it has an annual fee, or maybe you have upgraded to a better rewards card. Whatever the reason, closing that old account can have consequences that ripple through your credit score for years.

Closing your oldest credit account can reduce your average account age by several years in one stroke. Combined with the reduction in your total available credit (which increases your utilization ratio), closing an old card can cause a score drop of 20 to 45 points. If you must close a card due to annual fees, call the issuer first and ask about downgrading to a no-fee version that keeps the same account number and history.

Real-World Example: The Cost of Closing Your Oldest Card

Consider Sarah, a 34-year-old professional in Calgary. She has had a basic CIBC Visa since she was 19 — that is 15 years of history. She also has a TD Aeroplan Visa Infinite opened 5 years ago, a Scotiabank line of credit opened 3 years ago, and a recent Amazon Mastercard opened 6 months ago. Her average account age is about 5 years and 11 months.

If Sarah closes that CIBC Visa, her average account age immediately drops to about 2 years and 10 months — cutting it nearly in half. Even though the closed account will linger on her report for up to 10 years, some scoring models give less weight to closed accounts. The impact on her score could be immediate and painful, particularly if she is planning to apply for a mortgage in the next year.

When Closing an Account Might Be Worth It

There are situations where closing an old account may be justified despite the score impact:

• High annual fees with no downgrade option: If a card charges $150 or more per year and the issuer will not switch you to a no-fee product, the ongoing cost may outweigh the credit score benefit, especially if you have other old accounts.
• Temptation to overspend: If having an open credit line is causing you to accumulate debt, the financial cost of that debt far outweighs any credit score consideration.
• Fraud or security concerns: If an account has been compromised and the issuer cannot secure it, closing is the right move.
• Joint accounts with a former partner: After a separation or divorce, the risks of a joint account usually outweigh the age-of-history benefits.

Thin File Challenges for New Canadians and Young Adults

A “thin file” refers to a credit report with very few accounts or very little history. This is extremely common among two groups: young Canadians just entering the credit system and newcomers to Canada who may have had excellent credit in their home country but start fresh in Canada.

Why Thin Files Are Penalized

Credit scoring models need data to make predictions. When your file is thin — say, one credit card opened three months ago — the model has very little to work with. Even if you have made every payment on time and kept your balance low, the model cannot confidently predict your future behaviour based on just 90 days of data. This is why new credit users often find their scores stuck in the mid-600s despite doing everything right.

The New Canadian Challenge

Newcomers to Canada face a unique challenge. Even if you had an 850 credit score equivalent in the United States, the United Kingdom, or India, Canadian credit bureaus do not import foreign credit history. You start with a blank file. Some banks, like RBC and Scotiabank, have newcomer programs that offer secured credit cards or small credit limits to help immigrants start building history, but the clock starts from zero on your Canadian report.

Strategies to Build and Protect Your Credit History Length

Now that you understand why credit history age matters, let us focus on actionable strategies to maximize this scoring factor. Whether you are starting from scratch or trying to protect the history you already have, these approaches will help.

1. Keep Your Oldest Accounts Open and Active

   Your oldest credit accounts are your most valuable assets for credit history age. Even if you rarely use an old credit card, make at least one small purchase every three to six months to keep it active. Some issuers will close inactive accounts after 12 to 24 months of no activity, which would erase that account’s contribution to your history. Set a recurring reminder to use each card periodically — even a small $10 purchase at a gas station followed by an immediate payment keeps the account active and reporting to the bureaus.



2. Request Product Switches Instead of Closing Cards

   If your oldest card has an annual fee you no longer want to pay, call the issuer and ask for a product switch (also called a product transfer or card conversion) to a no-fee card within the same family. For example, you can switch a TD Aeroplan Visa Infinite ($139 annual fee) to a basic TD Rewards Visa (no annual fee) without losing your account history. All five major Canadian banks offer this option: RBC, TD, CIBC, BMO, and Scotiabank. When you call, specifically say you want to keep the same account number and history.



3. Be Strategic About Opening New Accounts

   Every new account you open reduces your average account age. This does not mean you should never open new accounts — credit mix and total available credit also matter — but be thoughtful about timing. If you are planning a major application like a mortgage within the next 12 months, avoid opening new credit cards or loans that are not essential. When you do open new accounts, try to space them out by at least six months so the impact on your average age is gradual.



4. Start Building Credit as Early as Possible

   If you are a parent, consider adding your teenager as an authorized user on one of your credit cards when they turn 18 (or even younger with some issuers). The account history from the primary cardholder’s account often gets reported on the authorized user’s credit file, giving them a head start. Alternatively, help your child apply for a student credit card or a secured credit card as soon as they are eligible. The earlier the clock starts, the better their history age will be when they need credit for major purchases.



5. Use a Secured Credit Card if You Have No History

   For newcomers to Canada or anyone starting from scratch, a secured credit card is the fastest way to start building history. Cards like the Home Trust Secured Visa, Capital One Secured Mastercard, or the Refresh Financial Secured Card require a refundable deposit (typically $200 to $500) that acts as your credit limit. Use the card for small regular purchases, pay the full balance each month, and within 6 to 12 months you should see a score established in the mid-600s range. After 12 to 18 months of responsible use, you can typically qualify for an unsecured card.

How Different Account Types Affect History Length

Not all credit accounts are created equal when it comes to how long they contribute to your credit history. Understanding the lifecycle of different account types helps you plan your credit strategy more effectively.

Revolving Credit (Credit Cards, Lines of Credit)

These accounts remain on your credit report for as long as they are open. A credit card opened in 2010 that is still active in 2026 has been contributing 16 years of positive history every single month. Lines of credit work the same way. This is why revolving credit accounts are the most valuable for building long-term history — they have no natural end date.

Installment Loans (Car Loans, Personal Loans)

These accounts have a defined repayment period. A five-year car loan opened in 2021 would be paid off by 2026 and would then be reported as closed. It would continue to appear on your credit report for up to 10 years in good standing but would no longer be an active, open account. This is why relying solely on installment loans for credit history is risky — they eventually end.

Mortgages

A mortgage is the longest installment loan most Canadians will ever have. A 25-year amortization period means the account remains open and active for decades, providing excellent long-term history. However, refinancing a mortgage closes the old account and opens a new one, which can affect your average account age. If you are refinancing, be aware of this trade-off.

The Authorized User Strategy

One of the most effective shortcuts for building credit history length in Canada is becoming an authorized user on someone else’s well-established credit card account. When you are added as an authorized user, the entire history of that account — including its opening date — typically gets reported to your credit file.

How It Works in Canada

If your parent has a credit card opened in 2005 and adds you as an authorized user in 2026, that account may appear on your credit report with the original 2005 opening date. Suddenly, you have 21 years of credit history from a single account. This can dramatically boost your average account age and, consequently, your score.

Important Caveats

Not all Canadian card issuers report authorized user accounts to the credit bureaus. Here is what you need to know:

Before relying on this strategy, confirm with the card issuer that they report authorized user accounts to at least one credit bureau. Also, ensure the primary cardholder has a spotless payment history on the account — any late payments on their record will also appear on yours.

Credit History Age and Major Financial Milestones

Understanding how credit history age impacts major financial decisions in Canada can help you plan ahead and time your applications strategically.

Mortgage Applications

Canadian mortgage lenders are among the most thorough when it comes to examining credit history length. Most A-lenders (major banks and top-tier lenders) prefer applicants with at least 2 years of established credit history, and ideally 5 or more years. A longer history can help you qualify for better rates. At current rates, the difference between a 2.5-year fixed rate at 4.89% versus 5.29% on a $500,000 mortgage amounts to approximately $12,400 in additional interest over the term.

Auto Loans

Dealership financing and auto lenders in Canada typically look for at least 1 to 2 years of credit history. With a thin file, you may still be approved but at significantly higher interest rates — sometimes 8% to 12% compared to promotional rates of 0% to 3.99% available to those with established histories and strong scores.

Rental Applications

Many Canadian landlords, especially those using professional screening services like Naborly, Certn, or SingleKey, review credit reports as part of the application. A thin file with very short history can be almost as problematic as bad credit because it does not give the landlord enough information to assess risk.

Provincial Differences in Credit Reporting Timelines

Canada’s credit reporting landscape is influenced by provincial legislation, which can affect how long certain items remain on your report. Here is how key provinces differ:

These provincial timelines matter because once a negative item falls off your report, it no longer affects your history calculations. Paradoxically, this can sometimes cause a temporary score dip if the removed item was also one of your older accounts, because the removal reduces your average account age.

Building Credit History Length: A Timeline

Here is what to expect at different stages of your credit-building journey in Canada:

Month 0 to 6: The Foundation

If you are starting from scratch, your first six months are about establishing a baseline. Open one secured credit card and use it for small regular purchases (gas, groceries, streaming services). Pay the full balance each month. By month 6, you should have a credit score generated, likely in the range of 620 to 660. Your credit file will still be considered “thin” by most lenders.

Month 6 to 12: Building Momentum

Continue responsible use of your secured card. Consider adding a second credit product, such as a small personal line of credit from your bank, to diversify your credit mix. Your score should be approaching 660 to 690 by the end of the first year.

Year 1 to 2: Establishing Credibility

By now, your payment history is building, and your credit age is starting to work in your favour. Many secured card issuers will offer to graduate you to an unsecured card at this point. Accept this upgrade — it typically preserves your account history while returning your security deposit. Your score should be in the 680 to 720 range with perfect management.

Year 2 to 5: The Growth Phase

Your credit history is now old enough to start contributing positively to your score. This is a good time to strategically add accounts if needed (a rewards credit card, an auto loan), but do so sparingly to protect your average age. Scores of 720 to 760 are achievable.

Year 5+: Mature Credit

With 5 or more years of history, you are in strong territory. Your credit age is now a meaningful positive factor, and lenders view you as an established credit user. Maintaining this advantage is mostly about not making mistakes — keep those old accounts open, continue on-time payments, and be strategic about new accounts. Scores of 760 and above are realistic.

Common Myths About Credit History Age in Canada

Myth: You Need Decades of History for a Good Score

While longer history is always better, you can achieve a “Good” score (660 to 724) with as little as 2 to 3 years of history if all other factors (payment history, utilization, mix, inquiries) are strong. History age is just one piece of the puzzle.

Myth: Closing a Card Immediately Erases Its History

As discussed earlier, closed accounts in good standing remain on your Canadian credit report for up to 10 years. The immediate impact of closing is on your utilization ratio (loss of available credit) rather than your history age — though the history age impact comes later when the account eventually falls off.

Myth: Opening a New Account Always Hurts Your Score

While a new account does lower your average age, the long-term benefits of having that account can outweigh the short-term age impact. A new credit card adds to your total available credit (improving utilization) and your credit mix (another positive factor). The key is timing and moderation.

Advanced Strategies for Maximizing Credit History Age

The “Anchor Account” Strategy

Choose one no-annual-fee credit card to be your anchor — the account you will never close, regardless of what other cards you open or close over the years. Good candidates include the Tangerine Money-Back Mastercard, the SimplyCash Card from American Express, or the CIBC Dividend Visa. Make this your oldest account and protect it fiercely.

Strategic Timing of New Applications

If you plan to apply for multiple new credit products, space them out. Opening three new accounts in the same month creates a triple impact on your average age. Instead, open one every six to twelve months. This gives your average age time to recover between each new addition.

If you are a newcomer to Canada, ask your bank about their newcomer credit card programs. RBC, TD, Scotiabank, and CIBC all offer special programs for new permanent residents and international students. Some of these programs offer unsecured credit cards with no prior Canadian history required, and the clock on your credit history starts immediately upon approval. Getting started in your first 90 days in Canada gives you the best possible head start.

Frequently Asked Questions About Credit History Age in Canada

Final Thoughts on Credit History Age

Credit history age is the one scoring factor that you cannot hack, shortcut, or buy your way through. It requires patience, consistency, and a long-term perspective. But the good news is that every single day that passes with your accounts in good standing is a day your credit history age is growing. By understanding how this factor works, protecting your oldest accounts, and being strategic about new credit applications, you can ensure that time is always working in your favour.

Whether you are a young Canadian just starting out, a newcomer building credit from scratch, or an established borrower looking to optimize your score, the principles are the same: start early, keep old accounts open, space out new applications, and above all, be patient. Your credit history age will grow, and with it, so will your financial opportunities.