What is your credit history? Think of it as part of a credit resume for getting a loan. It shows your past loan payment behavior, like your credit card, car, mortgage, personal loans, etc., so banks and lenders can decide whether they should trust you to repay money they lend you. It's like a sister who always borrows your clothes and never returns them. She has a poor history with you, and you probably won't loan her another sweater. Here's a hint. Some of the same information that goes into your credit history is also used to calculate your credit score. So the better your credit history, the better your credit score.
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What is Credit History and Why Does it Matter? | Discover | Credit Resource Center