Credit history

A detailed record of one's financial past, like the pages of a personal financial diary, documenting borrowing and repayment behavior, and providing a glimpse into an individual's financial habits and reliability.

Example

When applying for a mortgage, lenders examine the applicant's credit history to determine their creditworthiness. This history includes information about previous loans, credit card usage, payment punctuality, and any instances of bankruptcy or late payments. A strong credit history, characterized by consistent on-time payments and responsible borrowing, can improve the likelihood of obtaining a loan with favorable terms and interest rates.

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