Your credit history is basically a financial record of all credit payments you’ve made over your recent past. Your credit history will take into consideration:

• Bill payments
• Credit card usage
• Credit limits
• Mortgage payments
• Any loans or debts
• Electoral register

It will also note any missed credit payments, or whether you have opened multiple credit accounts in a short period of time. Both of which can negatively affect your credit score.

On a more positive note, your credit history will also consider whenever you have made payments on time, your high credit limit and your lack of loans, all of which can lead to a positive credit score. Throughout your lifetime, your credit report will rise and fall depending on your financial situation, but it’s important to keep your credit score as high as possible.

Many mortgage lenders will only accept applications from potential homeowners with a high credit score. A better credit report makes an applicant more likely to meet monthly repayments, reducing the risk for the lender. They rely on this credit information when making you an offer, with each lender having its own acceptance criteria.