Definition
A record of how you’ve managed credit over time, including loans and credit cards. It’s used by lenders to assess your creditworthiness.
What to consider
- Review your history periodically to spot any mistakes.
- Build a positive history by paying bills on time.
- Your credit history influences future financial opportunities.
Real world scenarios
- Pamela’s decade-long history of on-time payments and controlled credit usage impresses lenders, granting her better loan offers.
- After recovering from missed bills in his early twenties, Brandon systematically rebuilds his credit history by opening a secured card and paying on time.
- Sophia checks her credit history each year, ensuring any mistakes or fraudulent accounts are swiftly corrected to maintain a clean record.
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