Credit history is a report of all the money you’ve borrowed throughout your life outlined in your credit report. There are three credit reporting agencies (CRAs) that record your credit history every month: TransUnion, Experian, and Equifax. They keep track of these types of activity:
CRAs evaluate and report if and when you repay money to a lender as outlined in a contract. If you fail to make payments, credit reporting agencies add negative remarks to your credit report. The more derogatory remarks on your credit report, the harder it becomes to borrow money. Therefore, your three credit reports are vital to your financial success. In fact, your credit report is one of the core building blocks to financial wealth.