Why is it important to maintain a good credit history?
Having a good credit history means it will be easier for you to obtain credit when you need to. When you apply for credit, the company will check your credit score through a credit reference agency like Experian, Equifax or Call Credit. Your credit score is based on your known credit history and shows how you have repaid credit in the past – it is an indication of how you will repay credit in the future. If you have a good credit history you are seen as less of a risk to companies who are providing the credit and therefore more likely to be given the credit you might need at good rates. A good credit history means you will have access to a wider range of credit products. A poor credit history will limit your choice, but can be improved over time.
