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An up-to-date record of not only how you have used credit in the past, but also your history of payments toward other financial obligations, such as loans, rent, etc. Your credit history is encompassed in your credit reports with the three major credit bureaus (Experian, Equifax, and TransUnion), and may contain information about what types of financial accounts you open, whether you make payments on time or not, how much available credit you have, whether you've defaulted on any obligations, and certain public records such as court judgments.
Your credit score is based on your credit history. If you use your credit responsibly, your credit history will be more positive than if you default on your loans or make your payments after the deadline.
Your credit history is the biggest determining factor in terms of whether or not you can garner approval for a given credit card or loan, rent an apartment, lease a car, or even land a job. After all, it basically encompasses how responsible you are in meeting your financial obligations. Building a solid credit score at a young age is therefore extremely important because it can save you a substantial amount over the course of your life. The best way to quickly add to your credit history is to open a credit card because it will send information to your major credit reports each month. In addition, it's important that you check your major credit reports for inaccuracies each year because mistakes could lead to undeserved credit score damage and hamper your ability to borrow.