Information contained in a credit history report card
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Information contained in a credit history report card

Information contained in a credit history report card

Updated: December 26, 2012

Add to Favorites:

Credit history determines the credit worthiness of a person. When a customer applies for a loan, the financial institute looks into the credit history of the applicant. Credit history is the score that is ascertained to understand the borrower`s repaying capacity. The sooner the debtor clears his credit amount the better is his credit score.

Information mentioned in the credit history of an individual
  1. The kind of credits that you already hold determines the credit score in the credit history of a person. As soon as you apply for a loan or credit, it gets noted down by the credit history agencies. The more the number of credit lines opened in your name, the greater are the chances that you start to loose credibility in the eyes of the lender. This is because the amount of debt against your name also increases. This also gives a bad credit score which is mentioned in your credit history.
  2. The loan period remains mentioned in the credit history report. Loan period is the time that has been fixed by both the lender as well as the borrower to repay back the loan with interest. If a small amount of loan taken has a longer loan period then this attracts a bad credit score and hence gets mentioned in the credit history of the individual.
  3. The timely repayment of credit is also mentioned in the credit history. Monthly instalments are set by the lender for a loan amount that would help the borrower repay it within the stipulated time period. In case a borrower pays more than the fixed amount in every instalment then this attracts a good credit score. On the other hand if a borrower defaults in the payment of the instalments then that too remains mentioned in the credit history.
  4. Any kind of fraud on the part of the borrower is also mentioned. Sometimes the contact address, telephone number as well as job address and other personal information are not honestly mentioned by the borrower. This gives a bad impression as it indicates that the borrower might try to evade the repaying of the loan amount. This too remains mentioned in the credit history.
Importance of credit history

All the above information helps the lenders to further initiate the loan process. The credit history also determines if the borrower should be given some special discounts or not based on his credit score.

A credit history therefore has a huge impact on the financial status of a person. Taking a loan to set up a new business or applying for a loan to buy a house or car requires a good credit history. Now, even prospective employers have a look at the credit history of a person to ascertain the credibility of the person before giving them a job.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading