Account Payment History Too New to Rate

Many consumers that are new to consumer credit find that it is hard to open new accounts when they have a limited credit history. Lenders really want to see that you have an established credit history as proof that you can be trusted to maintain a new credit account in good standing.

“Account Payment History Too New to Rate” Credit Score Risk Factor Codes
Equifax 7
Experian 7
TransUnion 7
NextGen A0

While you might feel that six months is enough time to prove yourself, it can take much longer for credit bureaus to reward your good habits. FICO credit scores reserve 15% of the formula to reward long-term borrowers. It may take 2 years or longer before an account is seasoned enough to provide substantial benefit to your scores.

As long as you have at least one seasoned account, then you probably can be scored. However, a scoring error may occur if no seasoned accounts are yet a part of your credit history.

Your scores will likely drop initially whenever you apply for or open a new line of credit. This is due to the roughly 10% of the FICO scoring formula that is based on new credit.

Your payment history itself is the most important component of credit scoring. Fair Isaac Corporation reserves 35% of the scoring formula to reward consistent payers.

If you have been denied new credit because your existing credit accounts are simply too new to rate, then you should consider delaying any new credit applications for a while. Instead, focus on making sure that your existing credit accounts continue to report positively.

You can do this by ensuring that all payments are made on-time. Additionally, you should avoid accumulating large balances on your lines of credit, since high credit utilization rates can lower your credit scores.

Finally, when you do apply for credit, make sure that you are taking the appropriate step. Going from a store card to a mortgage is a mighty leap, but going from a credit card to a modest car loan is a more realistic step up.

While it may be frustrating to have to wait on opening new credit accounts until you have established a lasting credit history, it can help you build good habits. Those habits are what will help you manage multiple lines of credit as your credit and earnings grow.


Account payment history is too new to rate is Code 7 for FICO-based credit scoring products used by the major consumer credit bureaus. It also appears as code A0 in Fair Isaac’s NextGen risk scoring system. For more information on credit scoring, see the complete list of credit score factors.

Kenneth Long
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Kenneth Long

President at Debtors Unite
Kenneth Long is President of Debtors Unite, Inc. as well as President and Vice Chairman for Vision Credit Education, Inc. He served as a regional coordinator for the North Carolina Saves campaign. Long co-founded the Wake EITC Coalition along with Family Resource Center of Raleigh.

Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.

Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.

In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.

Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!

Favorite quote:

"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."

Thomas Jefferson
Kenneth Long
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