← Back to Glossary
Credit History
Definition
Credit history is a record of a person's borrowing and repayment activity, including loans, credit cards, and payment timeliness.
Explanation
Credit history includes account types, balances, payment records, credit limits, and inquiries. A longer credit history is better for your credit score, which is why keeping old accounts open is beneficial. Credit bureaus (Equifax, Experian, TransUnion) compile and maintain credit reports.
Review your credit report annually for errors. Negative information (late payments, collections) stays for 7 years. Bankruptcy stays for 10 years.
Example
A person with 15 years of perfect payment history and multiple account types has a stronger credit profile than someone with only 2 years of history.