I will start with defining some key terms to make sure we are on the same page. First, let's start with credit history. Your credit history is like a background check for your finances. It is a log of your payment pattern, whether or not you were punctual in your payments, and how much you still owe on your credit card. How important is this? VERY! Loan companies use this information to determine the likelihood of you paying back your loan and within a decent amount of time. You should also be aware that if you have filed for bankruptcy in the last 10 years, it will be on your credit history report.
