Credit history

A record of a person’s past borrowing and repayment activity. It shows how they have used credit and whether they have paid on time, which helps assess financial reliability.

Example

When applying for a mortgage, lenders review the applicant’s credit history to assess their creditworthiness. This history includes past loans, credit card use, payment timing, and any bankruptcies or late payments. A strong credit history, marked by consistent on-time payments and responsible borrowing, can improve the chances of getting a loan with better terms and interest rates.