To get a glimpse of your financial future, many businesses look at your financial past. This history is contained in your credit report. Your credit report determines everything from whether you qualify for a loan and the rate you’ll pay on that loan, to renting an apartment and obtaining car insurance.
What Is a Credit History?
Your credit history is a financial profile. It lets lenders, landlords and employers know how you have managed money in the past and helps them decide whether or not to do business with you. This history is contained in a credit report that is kept on file by the three independent credit bureaus listed below. It may include such information as:
How promptly you have paid off credit cards and loans
How well you have handled paying other bills, such as rent and utilities
Your total outstanding debts
How much available credit you have on credit cards and home equity loans