Credit History

Credit History

Credit history is a record of all the debts and repayments of a borrower. These records are then further used to determine the credit score of a borrower that tells about his/ her ability to repay debts. Credit history has all the details of a borrower, like the number of credit cards you have, how many loans you currently owe and whether you have repaid your earlier loans and bills on time or not.

When you apply for a loan, lenders want to know about your creditworthiness before lending money to you. Therefore, a credit history helps them to know all the information about you.

Sometimes, even employers also check your credit history to learn about you, when you apply for a job. Apart from this, insurance companies, etc. also take an account of your credit report or credit history for offering you an insurance cover.

Ways to Achieve a Good Credit History

A healthy habit of managing your expenses and debts can lead you to have a good credit history. And for achieving a healthy credit history, it is very important to follow a few good habits such as:

• Paying your bills on time can add value to your credit score and will also make you stress-free. Additionally, you will be spared from paying late fees.
• Always apply for credit when you actually need them. Before going to other companies for borrowing, you should try other options as well, such as borrowing from family, friends, etc.
• Do not file for bankruptcies frequently.
• As per experts, it is very important to limit your credit card usage below 30% for achieving a better credit score.

How to Choose a Credit Counselor?

There are plenty of companies that claim to help you come out of your debt and financial struggle. A lot of them can also be a scam and you should always be cautious and choose the one who fulfills the following criteria:

• Check whether the credit counseling agency is accredited by the National Foundation for Credit Counseling.
• Verify the counselor with Better Business Bureau and find if the company is trustable or its in good position.
• Last but not least, always look for an agency that you find comfortable to talk with.