Credit History and How It Impacts You
Credit history is a record of an individual’s payment behaviour that reflects his or her ability to repay a loan. Credit history is one of the critical factors used in credit scoring, and is employed by lending institutions as a qualifier for new loans. As most lenders will check your credit file to assess your creditworthiness prior to making a decision, a good credit repayment history will make it easier for you to obtain credit and to qualify for the big ticket items such as taking out a mortgage, planning a wedding, qualifying for a car loan and building up for retirement. You cannot build your credit history if you do not start having any credit. Here are some tips to build a positive credit history, step by step: 1. Get a credit card Signing up for a credit card will be the easiest alternative to start building up your credit history. Credit cards are a valuable stepping stone to measuring and tracking your credit and financial progress over time. How you charge purchases to your credit card and pay off your credit card debt every month will determine your credit standing and show how much of a credit risk [...]
The post Credit History and How It Impacts You appeared first on The New Savvy.
