What is a credit history?

Credit history is a report that documents anything related to how the individual managed his credit. Includes information about lending and repayment of credit cards, bank and car loans, mortgages and any other debt debt. The individual's credit history will include not only open accounts but includes any credit card accounts and loans desired or closed. It gives a list of late payments, the default loan value and bankruptcy.

The person's credit score is partially determined by his credit history. Things that are considered negative include bankruptcy, late payments, high credit card balances and default loan settings or credit card. These negative brands contribute to a lower credit score.

Good credit history is important for many reasons. Credit card companies together with banks and mortgage companies want to provide loans and loans to people who are considered a good risk. It means people who peHe returns. If persons with a bad history with a loan and probably a low credit score, can be considered a high risk and has a difficult time to obtain a loan, including loans. If credit is obtained, it can be with a higher interest rate than someone with a good history.

The individual's credit history is recorded on a credit report. There are three main companies for loan reports: Equifax, Transunion and Experian. Each company receives its information from credit card companies and bank. People should remember that some things like bankruptcy may not forever on a credit message. Consumers should find that negative brands can stay in the loan report and contact companies to be removed.

One step that people can make to improve their credit score is to get a copy of their credit report and check their credit history. Errors can be removedI go to the news company. Paying accounts in time, staying under credit limits and learning from past mistakes is also steps that the consumer can take to maintain a good loan.