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.

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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