payment-history

Vocabulary Word

Definition

'Payment history' is a track record of how you've handled your bills and payments over time. It's important because it shows if you are reliable when borrowing money.

Examples in Different Contexts

In credit reporting, 'payment history' significantly affects credit scores. A credit analyst might explain, 'Consistently making payments on time is the best way to maintain a positive payment history.'

Practice Scenarios

Business

Scenario:

This company has submitted a financing proposal, but we need to assess their ability to meet their financial obligations.

Response:

Absolutely, we should consider their payment history as one of the key indicators of their reliability.

Financial Technology

Scenario:

Our app gives users insights into their spending habits. Let's consider adding a feature that would allow them to monitor their bill payments.

Response:

Agreed, a payment history feature will be helpful as users can track their bills and ensure timely payment.