A person’s credit history is the record of his/her ability to repay debts and gives an idea about his/her responsiveness and responsibility as far as repaying loaned money is concerned. The credit history of a consumer consists of several information, some of which includes types of credit accounts, number of credit accounts, time duration of each credit account, amounts owed, amounts of available credit that has been used and whether the bills were paid by him/her on time. The credit history also explains whether the person has any liens, bankruptcies, collections or judgements. This information is available for one to view the credit history report.
Creditors or mortgage lenders such as credit card companies, etc. use the information given in a consumer’s credit history report to make a decision about whether money should be lended to the consumer or not. The better the results of a credit history report, the more are the person’s chances to get a loan or get a credit card request accepted. The following are some more points about credit history and credit report which will help you better understand the concept.
Who makes my credit history report?
You must be wondering who makes a person’s credit report. Well, the answer to this is a credit reporting company. There are different types of credit reporting company types, and some of them include Equifax, Experian, and TransUnion, etc.
Can I see my credit report?
Yes, it is possible to see your credit report. Anyone can get a free copy of your credit report every year. You can in fact get a copy from each of the credit reporting companies who write these reports.
What is credit score?
A credit score is a number. This number is based on and is evaluated from your credit history, but it does not appear on your annual credit history report unless one pays for it. Having a high credit score means that you have a good credit history whereas a low credit score means that you have low credit.
What if I do not have a credit?
In some cases, people might not have credit history. This happens when:
You do not have a credit card from any bank or company
You have never opted for a loan from a bank or credit union.
Without a credit history, a person might find it difficult to get a job, a credit card or even an apartment for living. This means that you need to get credit to get credit.
How does one get credit?
If you are interested in building your credit history, then you must pay all the bills that are included in a credit report. Many utility companies may put your information into a credit report, and thus one must always pay his/her utility bills on time. In addition, many credit card companies too put your information in credit reports. Getting store credit also helps to build credit and a secured credit card also does the same for you.