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With a society who revolves around credit, it is normal to hear about credit history and credit scores. Our interest rates on our credit cards and our loans depend on this information. And with how we affect it as debtors will also affect future loan and credit applications so we better be careful in keeping these in good standing.

What is a credit history?

A credit history is a record of all the debts that a person has and had. It also records how we are able to repay previous debt and how we are repaying current debts. It monitors whether we did a good job in paying them on time, ahead of time, or late. It also monitors the moves that we made when we were having difficulty in paying the debt back like say filed a postponement of payment plan with the lender because we are unemployed at that time, or having economic hardship. Basically it is a record on how we are as debtors.

Where can I get information about my credit history?

You can get this information from credit bureaus. Credit bureaus are the most common type of Credit Reporting Agencies. Whenever a lender approves you of a loan, or a credit card, it will be automatic that they will be reporting to these credit bureaus about you and your performance as their debtor. It will be reflected on a credit report. This credit report will be available to you and you can get them from the three most common credit bureaus that lender and creditors report to, Transunion, Experian, and Equifax.

Can banks and other lenders see my credit history?

Yes of course. An act was made to enable them to see your credit history because this way they are able to evaluate you as a debtor. They will pull up your credit report and look for blemishes like late payments, postponement of payment plans, default, and most importantly, bankruptcy. These can affect your eligibility for the loan as well as your credit score. If you have a fairly high credit score you have more chances of getting that loan. If you have a very low credit score, you will have difficulty in getting the amount that you need.

How can I get bad credit history?

Bad credit history comes from making late payments, default and bankruptcy. It rarely comes from you having a postponement of payment plan. If you make late payments frequently, this will be reported to the credit bureaus. Neglect often leads to default and a defaulted status can be a real pain on your credit history as well as a bankruptcy. So make sure that you manage your spending wisely to avoid these mishaps.