I'm looking to apply for another credit card. I have a few specific ones in mind, so I'd like to build some credit history before I apply. I've been told before I don't have enough "credit history".
I had three accounts. The first and oldest is a starter credit card from my credit union. The second was a loan from the same credit union for a motorcycle. The third and youngest loan was taken from a second credit union, also for a motorcycle. I've had no derogatory marks and all my bills have been paid on time.
I made a mistake in paying off my second oldest account of three, thinking that lowering how much I owed would improve my score. This is how I found out that only open accounts are being averaged. My credit score dropped by 50 points.
So my question is two-fold:
For "credit history", is it more important to have a higher average age or more accounts? More specifically, would paying off the newest loan, to bring up my average, be a good course of action considering my goal?
I'm aware that there are a lot of variables and that the answers might not be 100% correct. I'd just like to see your opinions or experiences on this topic.