It can be very difficult to get approved with a bad credit score whether youre applying for a home loan, personal loan, car loan, business loan or any other type of loan. Therefore, its super crucial that you get the credit history into sound condition before you apply.
What exactly is a credit history?
Before we dive into why is a credit history good or bad, first heres a quick rundown about what a credit history really is.
Fico scores in summary:
Simply put, your credit rating or rating is just a quantity between 0 and 1,000 (or 1,200 with respect to the credit scoring agency) thats on the basis of the different individual and economic information discovered inside your credit history such as for instance whether you spend your bills on time, how many times you spend them or if perhaps youve paid them after all.