Credit History

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DEFINITION of 'Credit History'

A record of a consumer's ability to repay debts and demonstrated responsibility in repaying debts. A consumer's credit history consists of information such as: number and types of credit accounts, how long each account has been open, amounts owed, amount of available credit used, whether bills are paid on time, and number of recent credit inquiries. It also contains information regarding whether the consumer has any bankruptcies, liens, judgments or collections. This information is all contained on a consumer's credit report.

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BREAKING DOWN 'Credit History'

Potential creditors, such as mortgage lenders and credit card companies, use the information in a consumer's credit history to decide whether to extend credit to that consumer. This information is also used to calculate the consumer's FICO score.

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RELATED FAQS
  1. What's the difference between credit score and credit history?

    Credit history refers to a consumer's past credit actions. Detailed on a credit report, it is a consumer's record of incurring ... Read Full Answer >>
  2. What are the most common reasons credit limit increase requests are declined?

    When you request a credit limit increase from your credit card provider, your current debt-to-income ratio and your projected ... Read Full Answer >>
  3. What are the requirements for an FHA loan?

    An FHA mortgage is backed by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban ... Read Full Answer >>
  4. Why would someone change their Social Security number?

    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
  5. What is the difference between "closed end credit" and a "line of credit?"

    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
  6. What types of liens are seen as good and which are bad for my credit?

    Creditors that allow purchases to be made through financing often require property to be pledged against a credit account; ... Read Full Answer >>

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