Credit History

Having a Clean Credit History Could Save You Thousands

Your credit history is a report about the credit that you have accumulated over the course of many years in your life. There are many things that effect your credit history, from your ability to quickly pay off debt, to the amount of times that you have been taken to collection in order to pay off debt. When you apply for a credit card or for housing, your credit history will be checked. When it is checked, an organization simply wants to determine how much risk they would be taking on if they chose to take you on as a client. For example, if you have a bad credit history of not paying off debt, then you run the risk of negatively effecting a company by not paying off any debt to them. Here are some things that everyone should know about their own credit histories:

Every Debt Gets Recorded on Your Credit History

Your credit history is a compilation of all of your debts, especially those debts that you did not pay off. While it does not show specific purchases, it will reflect when you have an outstanding bill. Therefore, make sure that to ensure that you have a good credit history, you pay off all of your bills promptly and on time. Maintaining a good credit history is important when you want to take on any kind of interest bearing loan.

Check Your Credit History When Possible

Due to the increase in identity theft, it is recommended that you check your credit history regularly so that you do not get caught having your credit history effected negatively because of stolen codes or names. You are entitled to a free credit report - and you must receive any information about your credit report if you are ever denied a loan or credit card based on your credit history.

You Will Have to Provide Personal Information for a Credit Check

When you have your credit history checked, you will be asked to offer some personal information so that yuo can be rightly identified. This information includes your full names, social security number, birth date and your current address. It is recommended that you do not give this information away too readily. Instead, be guarded about who gets ahold of your credit history because they will have access to important and personal information about you.

Keep a Good Credit History

keep a clean credit history to ensure that you have every opportunity to get a good rate on a loan or credit card. Having a good credit history is also good when you go to take out a loan or a mortgage. In order to maintain a good credit history, pay off all debts on time and actually take on debt. When you take on debt and are able to pay it off, you develop a track record of showing that you are good with the follow-through and will liekly be able to pay off future debt as well.

Your credit history is one of the most important assets that you will ever have. It determines your ability to get a good rate on a loan. When you have a good credit history, opportunities will literally open for you and you will be in a better position to make large purchases, such as a home or car. Make sure that you pay bills on time and frequently check your credit history to make sure that you are on track to obtaining a high credit score.