Your credit history shows how you've managed your
finances and repaid your debts over time. The history is pulled
together into a credit report by three private companies: Equifax,
Experian and
Trans Union.
These companies sell your credit report to banks and other creditors
so they can review your past credit history.
From the moment you first apply for a loan or a credit card, you
have a credit history.
It's important that you look at your credit reports
from each of the three companies to make sure they are correct.
Your credit report may vary from one company to another. Each copy
of your credit report costs about $9.00. You can also order all
3 of them from myFICO.
Your credit report includes these items:
A list of debts, such as
credit cards and car loans, as well as a history of how you paid
the debts.
Any bills that have been referred to a collection
agency, including items such as phone and medical bills.
Public record information, such as tax liens
or bankruptcies, even if these occurred several years ago.
Inquiries made about your creditworthiness
(an inquiry is made when you request credit; many times your report
also shows whether you were extended credit based upon the inquiry).
From the moment you first apply
for a loan or a credit card, you have a credit history. Your current
debts, paid debts, and how you've paid your debts are all recorded
in your credit report. That's why it's crucial for you to establish
and maintain a good credit history. It's also important that you
make sure each creditor is engaged in full-file credit reporting
so that your timely payments are recorded. This is a way to improve
your credit history.
