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Credit History

Your credit history is a record of all of your information. Your credit history is compiled by credit reporting agencies and then formatted into a credit report. From there interested parties look at your credit history to make decisions about your credit worthiness. Like any history your credit history stays with you for a long time, so we encourage you to always be careful with your credit.

A good credit rating is very important. Businesses inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. Based on your credit payment history, businesses can choose to grant or deny you credit provided you receive fair and equal treatment. Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a computer error. Solving credit problems may take time and patience, but it doesn't have to be an ordeal.

The Federal Trade Commission (FTC) enforces credit laws that protect your right to obtain, use, and maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws protect your rights by requiring businesses to give all consumers a fair and equal opportunity to receive credit and to resolve disputes over credit errors.

Here's a good story we found about credit history.

Is there such a thing as having too good a credit history? The answer is yes and no.

My friend has a major credit card that was issued at a rate of 9.9%. Imagine her surprise when the credit card bill arrived and she discovered she was being charged 18.5%.

So why was her credit rate going up? A company representative indicated that she had too much exposure because of three department store cards in her name. Never mind that these stores kept raising her limit because of her good credit record, not because she asked them to do so. And never mind that she never, ever maxed out the cards. Just because the credit was available, suddenly the cards became a liability.

Imagine her surprise when she learned her good credit, which inspired lenders to raise the amount she could borrow, also inspired a greedy credit card company to raise her interest rates - all based on what might happen.

She canceled the credit card.

We encourage you to check your credit history with a copy of your credit report. You can get a free credit report by visiting our home page.

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