Length of credit history in Canada: why account age matters

• Equifax says this factor looks at how long your accounts have been open, including your oldest and most recent accounts.
• The FCAC gives an example: opening a new card to transfer a balance counts as a new account, may reduce the average age of your accounts and may lower your score.

The FCAC says closing an older account means you lose older credit history and reduce your available credit. Keeping it open, even with a zero balance, helps you keep your history and can improve your utilization. It suggests keeping an account open if it has no annual fee, is easy to manage, and you can use it occasionally to keep it active. Check with your issuer about what happens to an unused card.

Sources disagree, so check before you rely on a number. Equifax Canada says an account paid as agreed stays up to 6 years from when the lender reports it closed. The FCAC page says closed accounts stay up to 10 years with Equifax, and up to 20 years with TransUnion.

Newcomers and young adults start with no history. One account used with care and kept open builds age over time. Time cannot be rushed, and each new application can add a hard inquiry and lower the average age, so avoid opening several accounts quickly.

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