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What is a “credit history”?

Image of ecommerceHave you ever wondered what “credit history” is and what are the options you can be affected by?

With the information below, I hope together to clarify this issue, starting from the idea the next time you think about credit, be more confident and calm in the steps you take.

Perhaps you will ask what this information is more closely related to.

It reflects your habits and the ability to redeem your obligations, which are based on past exits, on your part, credits. Based on it, you are classified as a “regular payer” if you are accustomed to repaying your obligations. On the other hand, you can also fall under the definition of “incorrect payer” if you allow for arrears.


Now, you understand that your credit history (past credit information you have) serves financial institutions to decide whether you are a risky or reliable potential customer. So, what is the likelihood of you paying back if you lend. In this line of thought, if you have paid your contributions so far in time and you have no other credit, then in a situation where you apply for an additional loan to another financial institution, your good credit history will be your big plus!

So far so good! What do we do, however, if our credit history is rather bad?

There are two things you need to be aware of:

  • If you re-apply for credit in another institution, your credit history will be crucial!
  • It is a common practice for bad credit history to become a major reason for rejecting an additional credit request! So be careful with the bad credit loans.

Generally, the recreated picture does not look pink enough to date. It turns out that the chance to be approved when you can not boast a good credit history is too minimal.

And is there any such possibility at all?

In the specific situation, there are conditions in which you can benefit. If you are in difficulty to repay a past liability, the approval process for granting funds may be facilitated by your existing proven income. This income may be an employment contract, a pension, bank statements, a contract abroad, a rent contract, etc. Of course, it’s good to keep in mind that the loan is likely to be smaller in size, but it will be enough to cover your needs as a candidate.

The alternative is also valid!

You can get a credit limit when applying for a credit card if you do not have a bad credit history but you have no proven insurance income or another! Which is a favorable condition from which you can get the positive for you!

In conclusion, we can say that from every situation we can find an outcome, however demanding it may seem from the beginning. Even for yours.

If you are interested about credit score this video is for you

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