## Introduction
This section is about understanding the importance of the number and age of the accounts on a borrower’s credit report.
## Number and Age of Accounts
### Understanding Credit History Through Account Age and Number
When a lender looks at a borrower’s credit report, one key thing they check is the credit history. This includes seeing if the borrower has a long-standing (older) credit history or a newer one. They also look at how many accounts have been opened recently versus how many are older. This helps the lender understand the borrower’s financial habits better.
### The Impact of Older, Established Accounts
Having older, established accounts on your credit report is usually seen as a good sign. It suggests that you’ve been managing credit well for a long time, which lowers your risk as a borrower in the eyes of the lender. However, if your long-standing credit history suddenly includes many new accounts, it might seem like you’re taking on too much debt too quickly. This could make you appear as a higher risk.
### Newly Established Credit Histories
If your credit history is relatively new, it doesn’t automatically mean you’re a high-risk borrower. In fact, if you’re consistently making payments on time for your new accounts, you’re seen as less of a risk than someone who has older accounts but isn’t managing them well. The key point here is how well you’re keeping up with your payments, regardless of how long your accounts have been open.
### Recent Related Announcements
This segment confirms that there haven’t been any updates or changes to these guidelines recently.
## References
For more details, visit Number and Age of Accounts of the Fannie Mae Selling Guide.