Credit History
Your credit history is a report which gives an account of your past borrowing activities and how you went about paying back your debts, whether you made your payments on time, whether you have outstanding debts, and other matters such as if you have ever been declared bankrupt. As such, it also paints a picture of your likely behaviour in the event of you borrowing money again. Therefore, when you apply for a loan, a credit agency will look at your credit history record and determine whether they want to lend to you or not.
If you do have a credit history of non-repayment of debts, or late repayments or any other irregularities, this will mean that if a lender does agree to give you a loan you will be more likely to have to repay it at a higher interest rate. If your credit history is spotless, then you will be able to borrow at a much more favourable rate.
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