Credit History

A record of how a person has borrowed and repaid debts. It is often composed of a list of individual consumer debts and an indication as to whether or not the debts were repaid in a timely fashion or "as agreed." Developed by credit institutions, a complex recording system of documenting credit history is called a credit report. Lenders will review a potential borrower’s credit history to determine if they qualify for a loan. Financial institutions send information on the loans they make to several companies to keep as a reference for future lending. Each time you apply for a loan, the lender will check your credit history with these companies. As a consumer, you have certain rights to review your record and correct and inaccuracies. A credit history is also called a credit record or credit profile. Your FICO score is a numerical component that essentially comprises events from your credit history.

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