Credit history, reports, and scores refer to an individual’s or company’s past financial habits and actions: past borrowing, repayment, credit use, late payments, bankruptcy, etc..
When an individual requests credit for any reason from a bank, credit card company, financial institution, store, etc., their information is communicated to one or all three national credit bureaus. At that time, the report is updated with new information and status regarding their credit accounts, address, employment, along with other pertinent changes since the last inquiry.
The information in the report is used by lenders, banks, and financial institutions to determine the individuals (or company’s / entity’s) willingness and ability to repay. This is known as credit worthiness.
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