A credit scoring model looks at more factors than the payment history in order to determine your credit score. These factors include the length and the depth of a credit history. As the term suggests the length of a credit history pertains to the timeline. The older the accounts that are reported to your credit report the older here credit history will considered to be. The length of a credit history refers to how long back in time does it trace your credit transactions. If you only started using credit two to three years back then you have a short credit history. The longer the credit history the better it is for your credit score.
The depth of her credit history is a matter of the number of and the different kinds of account that are listed in your credit report. For example if you only use one or two credit cards then the depth of your history is not much. However a person who has a mortgage loan, an automobile loan, uses a credit card and other kinds of installment loans will be considered to have a deep credit history. The depth of a credit history is also refers to as a thick or a thin file. The more variety and number of accounts on a credit file, the thicker it is supposed to be. A thick credit file is good for a credit score.
Sometimes when you ordered your personal credit report you may get a summarization or a statement in the report such as “too few accounts” or something like that. This statement implies that your credit history and here credit rating could benefit more from the presence of more credit accounts both in terms of number and variety.