credit-history

Vocabulary Word

Definition

'Credit history' is a record of your past borrowing and repaying actions. It includes details like if you paid on time and how much you owe. It is mainly used by lenders to determine if you're likely to repay future loans or credit.

Examples in Different Contexts

In consumer credit, 'credit-history' is a record of a borrower's past borrowing and repayments, including any late payments or defaults. A credit counselor might advise, 'Building a positive credit-history is essential for securing loans with favorable terms in the future.'

Practice Scenarios

Real-Estate

Scenario:

As your agent, I suggest looking into ways to boost your credit score before we start applying for loans.

Response:

Agreed. I will work on improving my credit history before we proceed with loan applications.

Business

Scenario:

We're considering extending our services to include financial lending, which means we'll need to pull credit reports to assess risk more accurately.

Response:

I’ll research the best ways to analyze credit histories to help us determine our lending risk.