Investor's wiki

Credit History

Credit History

What is credit history?

A credit history is the record of how a person has dealt with their credit in the past, including complete debt load, number of credit lines, and timeliness of payment. Lenders take a gander at a potential client's credit history to choose whether or not to offer another credit extension, and to assist with setting the terms of the loan. Employers and property managers might utilize credit accounts to assess job up-and-comers or possible tenants.

More profound definition

A credit history offers a definite gander at the number of lines of credit — bank loans, mortgages, credit card accounts — you have. Credit bureaus monitor your credit history, and they generate credit reports that detail your credit history at your request or for lenders or different institutions that need to audit your creditworthiness.
Your credit history subtleties the number of requests there that have been for credit reports, notwithstanding any negative moves initiated against you, like property liens or court decisions against you by creditors. The data contained in your credit history is utilized to work out your FICO score. Higher FICO scores show better creditworthiness.
A decent credit history makes it more straightforward for you to get credit, while a terrible credit history might keep you from borrowing or fundamentally reduce your options. In the event that you have a history of not paying bills on time, or you've petitioned for financial protection or had accounts go into assortment, you might experience more difficulty doing everything, from finding a place to reside to finding a new line of work.

Credit history model

Antonio has three credit cards recorded in his credit history, which subtleties how long he's had each card, the spending limit on each card, and the amount he owes. He likewise has a vehicle loan and a mortgage, the two of which are recorded in his credit history. With the vast majority of his funds tied up in his delivery business, Antonio has maximized his credit cards in a badly considered plan to assist a companion who has relationship issues.
With the economy in recession, Antonio's business is in a difficult situation and his companion can't pay back the money he borrowed through Antonio's credit cards, endangering Antonio of bankruptcy. He might want to apply for a new line of credit to consolidate his debt, yet when potential lenders look at his credit history, they request a horrendously high rate of interest.
What's the difference between a credit score and a credit report? Figure out here.


  • Credit history is a record of your ability to repay debts and demonstrated responsibility in repaying them.
  • You will receive benefits for having a decent credit history, for example, being offered lower interest rates on mortgage loans and vehicle insurance.
  • Your credit report incorporates data about the number and types of your credit accounts, how long each account has been open, amounts owed, amount of accessible credit utilized, whether bills were paid on time, and the number of recent credit requests.