Understanding Your Credit History and How it Affects your Credit Score


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Credit Card Applications » Research » Guides » Building Credit History » Understanding Your Credit History and How it Affects your Credit Score

Understanding Your Credit History and How it Affects your Credit Score

Updated: December 26, 2012

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

One thing about histories is that they never let go of the past and always connect them on what is happening at present. Indeed whatever happens in the past contributed to what is happening at present and will influence the things to come in the future.

This is also true in credit history; depending on your current credit-standing this can be fortunate or unfortunate. All your credit-related activities both from the past and present are all recorded in your credit history. Your activities can either add points or deduct some figures from your credit score.

Your credit history contents are the basis of your credit score and your credit worthiness. Your credit worthiness in turn affects your reputation not just in the field of credit-related or loan-related business.

There are just two crucial things you can do to your credit scores, you can either lift it high or dig it deeper. Either ways one thing is for sure your score will influence your entire life. Depending on what you put on your credit history your credit score can be among the bests that are with a score of 720 or higher or among the worst with scores ranging from 499 and below. Well credit scores are not just about the bests and the worst, in between are also in. If your credit score is between 500 to 580, well you need to exert more efforts for these scores are still bad ones. Of you get digits between 620-679 well you are doing okay since the score is not that bad however it is not good either so strive for more. So long as there are higher digits to look forward to, work on it. If your credit history gave you a credit score ranging from 680 to 720, well you are on the right track for you are doing well.

You know that working on a good credit history is not as easy as blinking of the eye. Well you reap what you sow! Your efforts of keeping a good record will be compensated accordingly in so many ways. Your good record in the crediting industry will save you thousands of dollars. In the same manner, letting your credit history create a bad record thus a low credit score will lead you to financial discomforts that would not be subtle and sudden. Bad credit history will leave you with lingering effects making you lose thousands of dollars.

People are more in line with the use of credit to purchase items and services. A cashless economy has grown sufficing popularity to make people subscribe to the use of credit. Thus having a good credit history is pivotal nowadays.

If you know where you are going, you would not be lost. A good credit history will make you not just a step away but several steps away from the pitfalls and troubles brought about by the damaging credit nightmares. Moreover you will be several steps closer to the advantages of being credit worthy.

A good record always pays.

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.
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