How to Reference Credit History

Credit history documents a business or individual's paid and unpaid debts over a certain amount of time and may list information pertaining to credit cards, mortgages, car loans, and medical billing. This official information is used by lenders to assess the likelihood that a person will pay bills in a timely manner. Credit score is also a key factor in credit-history information. The score, typically ranging from 300-900, is calculated using a mathematical algorithm that takes into account if bills are paid on time, the amount of money owed, length of credit history, and type of credit that is being used.

Instructions

1

Visit AnnualCreditReport.com to obtain a free copy of your credit history so you can properly reference your credit information. Select your state and fill out all requested information including your name, birth date, and social security number. Choose which credit bureau you would like to run the report. Verify that the information included on the credit-bureau file is correct and answer the security questions. Submit the order and wait for the credit history to populate.

2

Review your credit history including potential negative items and accounts in good standing. Make sure all of the information included in the report is accurate. You will see a list your current creditors, how much is owed on each account, monthly payments, and any past-due reports.

3

Print a copy of your credit report so you can easily reference your credit history when speaking with potential lenders. Refer to specific points in your history by revealing the creditor's name and if the account has been paid in a timely fashion. Explain any blips on the credit history because of financial hardship such as loss of job or medical issues.

4

Obtain similar reports from the other two credit-reporting agencies as you are allowed one free report from each per year. Each agency collects slightly different information, and data can be correct from one agency and incorrect from another. Use the online tool to point out errors and have them corrected.

5

Consider purchasing your credit score once you have reviewed your credit history. Often when referencing credit, it helps to provide your personal credit score which gives an immediate number value to your credit worthiness.