Your Credit History-What Should I know

By The CreditConsultant on January 21, 2011 In Finance

You might be wondering why your credit history is so important. A credit history report is a compilation of financial data about your monthly bills, your credit card status, any outstanding loans you may have, and any tax liens or judgments against you.

A good credit history is typically needed to buy a house, buy a car, apply for a credit card, or even get employed in certain jobs. Even many phone companies, utility companies, and property leasing companies use your financial history to determine if they can do business with you.

If your history reflects mostly negative information, then you can be denied any of these items. How detrimental would it be if you were denied the job or apartment of your dreams, all because your history was negative? Thus, it is extremely important to know about credit reports and how to keep your history positive.

The easiest way to keep your financial history positive is to pay any outstanding bills on time, every month. In addition, keep your card balances at or below 30% of their limits at all times. (This is the percentage recommended by most reporting agencies and financial experts to most positively affect your score.)

By keeping your history in good standing, you ensure that your score will be in a good range the next time you need to apply for something important. Create good financial habits now, so that your financial history reflects positive elements in the future. Now that you are empowered with more information, go out there and take action.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book for Free and get a Free Restore your Credit E-class at