The importance of credit history


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most 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 » The importance of credit history

The importance of credit history

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

Credit history and credit scores are things we all hear a lot about but do not know enough about. There are enough and more people out there who have to deal with heavy prices and costs on a number of things because of lots of reasons. Being turned down on a loan, having to deal with refusals from landlords, higher rates of interest are all complications numerous people have to sort out at one point or another. When people consider your applications for just about anything financial, the first thing they consider is your credit history. If you are seen to be a bad risk in terms of your credit score, then people will be extremely reluctant to do business with you. It could also be just as bad if you have not worked at having a credit history up until then. You are an unknown entity to them to work with and they will not be up for it immediately.

Tips for newbie's

If you are a newcomer to credit and credit history, then you should begin sooner than later at building up a good credit score. As a beginner, you may need to try your hand at a secured credit card. This will help you tackle your loans and other situations better later on. When your monthly report is sent out and your score improves, you can eventually move onto a better card which is unsecured. Maintain a credit history is important for every kind of decision and you cannot afford to consider it to be something less than vital at any point in time. Know how the credit reporting process works, how much weight age there is and also understand how to access and check your credit history. This will help you to understand how things stand and will also allow lenders to know how competent you are in matters.

Tips for experienced people

When you want to find out how things stand, you have to begin at the credit bureaus reports. This will give you a fair idea of how things stand and what you should do to work it out. You can compare and contrast cards and narrow it down to the best one possible through this process. Apply only for credit you need and stay within the credit limit by paying off what is owed every month regularly in installments. Pay the bills on time and in full or at least a minimum expected amount and maintain good credit history.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!