Credit history is a measure of your ability to repay debts and demonstrate responsibility in repaying them.
It is recorded in a credit report, with account number and types, amount owed and available, and payment history.
Payment history is the single largest factor in a credit score, accounting for 35%. Pay bills on time for a good score.
The length of credit history is also an essential factor, accounting for 15%. The longer the credit, the higher the score.
It is important to start building credit as early as possible in life. This will show you are responsible with money.
People who are new to building credit might have high scores if they maintain other factors, such as paying on time.
If you struggle to keep track of payment dates, you may want to set up an autopay system through your bank.
It is smart to check your credit reports from time to time and look for any errors. Maintaining good history begins there.
Credit reports are the foundation for all credit scores, so keeping tabs on contents is integral to credit health.