What is Credit History?
Any time you buy something on credit, it is entered into your credit history. There are a few separate institutions that keep track of the types of credit that you have. If, for instance, you took out a $500 loan and paid it back in a year, you would have a good credit rating because you have shown that you’re responsible for paying back your debts. If you took out that same amount and never paid it back, you’d have a bad credit rating because you neglected your debt. Whenever you want a loan, the lending company looks at your credit rating. If your score is low, they’re less likely to give you the money (or more likely to put a high interest rate on it) because they can’t be assured that you’ll pay the money back. If your rating is high, they’re much more likely to give you the money because they know that you’ll pay it back to them. A student visa credit card is a good way to get your credit rating up and to get a little credit history behind you. Just make sure that you spend only w
Credit history is a credible look at past financial consequences of an individuals ability to pay, or not to pay, his or her debts and whether the obligations are paid on time in the manner agreed. Question: What is a credit score? Answer: A credit score is a mathematical formula developed to determine an individuals credit worthiness. Credit scores start at 300 and go to up to 850. The higher the score, the more credit worthy you are considered to be. Question: Do I have a right to a free credit report? Answer: Yes. The Fair and Accurate Credit Transaction Act gives all Americans the right to a free credit report. This law includes provisions designed to help protect consumers against identity theft. Question: If I order my credit report, will it hurt my credit? Answer: No, not unless you use it to apply for a loan, credit card or some other credit obligation. Question: How do I get a free credit report? Answer: You can contact one of the three major credit bureaus: Experian: (888) 39
