WHAT IS A CREDIT HISTORY

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What is a credit history?
A credit history predicts how likely you are to pay back a loan on time. A scoring model uses details from your credit report to develop a credit score.

Business utilize a mathematical formula– called a scoring model– to create your credit report from the information in your credit report.

Some elements that make up a typical credit score consist of:

Your bill-paying history
Your current unpaid debt
The number and type of loan accounts you have
How long you have actually had your loan accounts open
How much of your readily available credit you are using
New applications for credit

Whether you have had a financial obligation sent to collection, a foreclosure, or an insolvency, and how long earlier
Companies utilize credit scores to make choices such as whether to offer you a mortgage, credit card, vehicle loan, or other credit item. They are likewise used to determine the interest rate you get on a loan or charge card, and the credit line.

Bear in mind there is no “one” credit report. It is very important to understand that you do not have simply “one” credit report and there are numerous credit report offered to you in addition to lenders. Any credit score depends on the data utilized to compute it, and might differ depending on the scoring model, the source of your credit report, the kind of loan product, and even the day when it was calculated.

Typically a greater rating makes it simpler to receive a loan and might lead to a better interest rate. Most credit scores range from 300-850.

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