You may wonder what is credit history in relation to your credit score since your score is based on your credit history. Credit history refers to all the credit-related transactions you have undertaken in the past. It captures the loans and credit cards you have taken and your repayment behavior.
With a good credit history, your credit score is high. If you have defaulted on loans or made late payments on our credit card bills, your credit score drops. Knowing the credit history definition and the various facets that affect your score is important as it helps you change your financial habits to build a better credit score.
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