Building a Credit History

Anytime you use credit, you’re adding a chapter to your credit history. All your credit transactions are recorded in a credit report, which is available to potential lenders who want to know how you’ve used credit in the past.

Your credit history includes all uses of credit—from student loans to everyday credit purchases—but not other payments, like the ones you make to the utility company or your landlord.

You’re assigned a credit score based on the details of your credit report. Your credit score is a snapshot of your creditworthiness, which lenders use to decide if you present a credit risk. The higher your credit score, the more creditworthy you are, and the more likely you are to receive credit.

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