What is our credit history?

March 29, 2015

 our credit historyYou may not even realize that you have a credit history, but if you have ever taken advantage of a “Buy Now, Pay Later” offer, used a credit card, or taken out a loan, you have one.

It does not matter if you received credit through a credit card company, retail store, or a financial institution such as a bank, they are able to send information to a credit-reporting agency. Specifically, information about whether you make your payments on time. Credit-reporting agencies, sometimes referred to as credit bureaus, collect this type of information about you and keep track of how long it takes you to pay back the money that you have borrowed.

This information all goes into your “credit history.” If you ever need another loan in the future, the possible lender is going to check whether you have a good credit history with the credit-reporting agency. A credit-reporting agency provides information about credit history in two ways, as a credit score and a credit report.

As you can probably imagine, it is very important to have good credit history. A lender may outright refuse to give you a loan if you have a poor credit history. This could mean not being able to take out a personal loan, buying a new car, or get a mortgage to buy a new house. If you have poor credit and the lender does give you a loan, it might mean paying a much higher interest rate. Your poor credit history may even mean that a tenant refuses to rent you an apartment.

Now you know the importance of having good credit.

For more information you can call me right now: 416-825-7888 or email angela@azgta.com

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