What Is Your Credit History?

What Is Your Credit History?

Your credit history is a record of your credit accounts. The three major credit bureaus (TransUnion, Equifax and Experian) each store detailed records of your accounts and payment history. This information becomes especially important when you apply for new credit cards, loans and mortgages.

How do credit bureaus use your credit history?

Credit histories are useful because they show lenders how reliable you are with financial responsibilities. Credit bureaus may use your credit history to calculate your credit score, which is a snapshot numerical estimation of how likely you are to pay off debt in the future. Lenders typically use your credit score and credit history to try to assess your creditworthiness, so they can decide whether to approve you for credit or how to set their lending rates.

Establishing a healthy credit history can help in many situations. A higher credit score can result in lower mortgage rates, a lower APR for your credit cards, lower insurance premiums and better rewards on credit cards.

What kind of information is in your credit history?

1. Credit accounts. Your credit cards, loans and mortgages can all be on your credit history. You can also find additional details like the date the account was issued, the amounts owed, the credit limit for credit cards and payment history.

2. Inquiries. Any time you apply for a new line of credit, the lender will usually check your credit history, initiating a "hard inquiry" on your report. Hard inquiries could deduct a few points from your credit score and negatively impact your credit history for up to two years before being removed, though the impact generally decreases over time.

3. Derogatory marks. If you become severely delinquent in your payments and your account is sent to a collections agency, the account in collections will often be noted on your credit history, which can significantly lower your score. In fact, derogatory marks typically stay on your credit history for seven to ten years.

4. On-time payment history. If you are 30, 60 or 90 days late on a payment, it will usually be noted on your credit history and could negatively affect your score. The later the payments are and the more late payments that show up on your credit history, the more negatively they can impact your score.

What kind of information is not in your credit history?

1. Bank accounts, such as checking and savings accounts, do not typically involve credit, so in most cases, they do not have an effect on your credit history.

2. Your income, age and race will not appear on your credit history. Date of birth may appear as part of your identifying information, but it is not used in credit scoring.

What should you do if your credit history is incorrect?

An up-to-date and accurate credit history is very important in ensuring you have the best credit score possible. If you're concerned that your credit history is inaccurate, read this detailed guide on how to dispute an error on your credit report. Please keep in mind that the scores and credit information you see on Credit Karma come directly from TransUnion and Equifax, respectively. If your credit information that you see on Credit Karma is incorrect, please contact those credit bureaus directly.

A change in your credit score indicates a change in your credit history. Monitor your full TransUnion and Equifax credit reports on Credit Karma so you'll understand your report details, and if you need to take any actions to correct your credit history.

Editorial Note: The editorial content on this site is not provided by the bank or issuer. Opinions expressed here are author's alone, not those of the bank or issuer, and have not been reviewed, approved or otherwise endorsed by the bank or issuer. Credit Karma may be compensated by companies mentioned through advertising, affiliate programs or otherwise. It is this compensation that enables Credit Karma to provide its members with services like free access to your credit scores and free monitoring of credit and financial accounts at no charge.

 

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

All Comments

Results 1-25 of 116Results per page: 5 | 10 | 25Page 1 of 5   Previous | Next
1 Contribution
1821 People Helped

Helpful to 1821 out of 1936 people

The basic problem with this report is it's from TransUnion.  I have a C with them and EXCELLENT with the other 2.  Before you apply for credit, ask if TransUnion is going to be involved in their determination of risk versus the other 2.  If the say it will weigh heavily, walk out the door and go somewhere else. TransUnion should be shut down, they are not good for the welfare of the citizens of our country. 

1 Contribution
617 People Helped

Helpful to 617 out of 651 people

I have found that Credit Karma is NOT the most accurate tool simply for the fact they only go with 1 of the 3 credit companies. But, it CAN be used as a very good guideline to monitor your credit. I was having the same problems as most of you (inaccuracies regarding history, etc...) I done some research and found that that is at NO FAULT to credit karma. If the creditor(s) did not report to transunion (which, often times they do NOT report to all three) then, it will not be on credit Karma's profile for you. Credit karma is a very good service for what it gives (better than any other I've seen for free) but, agreed, there are some things that can be fixed and pulling from all three major credit bureaus is on the top of that list. 

1 Contribution
501 People Helped

Helpful to 501 out of 545 people

I see a difference in my credit scores also between TransUnion and Equfiax.  I would agree with others that TransUnion is not the best company to be tracking credit history or scores.  What is Credit Karma doing about getting scores from other credit company's?

1 Contribution
84 People Helped

Helpful to 84 out of 102 people

Bought a car less than 2 years ago and my credit score was just below 800.  Today, checking Credit Karma it gives me a score of 658.  Credit scores seem to me to simply be a way for companies to extort funds from those who are already in need of a break.  Companies can simply say you owe them and place something on your report even when they are acting outside of the confines of state law..... ....lol....what a joke.........

2 Contributions
364 People Helped

Helpful to 362 out of 412 people

My credit reports from the major reporting agencies is 22 years or more. Why is yours only 6 years?  I am 46, I am pretty sure I have more than six years of credit on file. Why would all the years of excellent credit be ignored? 

1 Contribution
71 People Helped

Helpful to 71 out of 86 people

I found Credit Karma much superior to Equifax who has errors in my profile including my date of birth and refuses to send me my report for free, which really irritates me a lot, and there is no apparent way to correspond with them directly.  Thank you for your service and for giving me my score without any problem.  Thanks very much.  Robert,  Huntsville AL   

1 Contribution
62 People Helped

Helpful to 62 out of 77 people

I have found that I have received a most accurate Credit Report from Credit Karma than any other credit reporting company. I have recommended that others and friends should follow Credit Karma and help themselves fix and monitor their own credit report. Great job Credit Karma....

1 Contribution
178 People Helped

Helpful to 178 out of 218 people

I really don't understand this rating. My credit history is reported as 0 years. Say what? It's true that I have no open accounts - that is by design. I have a mortgage, which is always up to date, and I paid off my car loan (60 months allowed) in 47 months; never missed a payment, and was never late. Everything else (I'm 62 - there have been many "everything else" accounts - is paid off, which has allowed me to retire in good shape. And I intend to stay that way. I'm looking for one loan, one only, and it will be paid on time, or sooner. I admit it - I just do not understand the system.

1 Contribution
18 People Helped

Helpful to 18 out of 29 people

very helpful tx

1 Contribution
49 People Helped

Helpful to 49 out of 69 people

I am 60 years old and have a credit card that I have paid on time since 1994.  Why does your records reflect 7.5 years with no open accounts?

1 Contribution
4 People Helped

Helpful to 4 out of 4 people

Why don't they use all three? Because they're sponsored by trans union. Possibly the worst one of the three!!! Don't trust any of them...or the goverment lol!!

1 Contribution
3 People Helped

Helpful to 3 out of 3 people

Credit karma needs to use equifax or some other credit bureau because at the other credit bureau's I have 650+ credit score. Here I have 586. This does not help me. Only thing is helps is that is shows what I have in default   How ever. If I have a few loans in default. How do I have zero years of credit history.  Having a loan in default (which I'm in the works of getting outta default ) should tell you I obviously had some sort of credit history.   Transunion is horrible. Will creditkarma use all three credit bureaus. Or what's. Fix this problem ASAP.!!!

1 Contribution
6 People Helped

Helpful to 6 out of 8 people

I find creditkarma to be very accurate and fair.

1 Contribution
12 People Helped

Helpful to 12 out of 16 people

I don't understand after all these years of paying off loans or paying them off ahead of time ,  never late with payments to banks, credit card Co.'s,   paying off mortgages and my credit is still not over 700 .   #@%&$* !!!

1 Contribution
1 Person Helped

Helpful to 1 out of 1 people

I filed a chapter 7 bankruptcy one year ago, and have not been able to get any kind of credit, even a secured credit card since then.

My credit score is a 684 with T.U. and a 690 with experian, but I still can't get credit.

So, I owe not one penny to anyone.

If I don't have the money to buy something, that's the end of the story.   Can't buy it.  I'm probably way better off that way.

I've gotten several calls from law firms to "repair my credit", and get the bankruptcy off.   It sounds good, but I'm sure it can still be found out.

1 Contribution
1 Person Helped

Helpful to 1 out of 1 people

If not for Kreditkarma.com I would not have seen this. It is my understanding that once your account is handed over to a " Collections Agency " the Creditors you are either supposedly in debt to or are indeed in debt to write this off! So they have their money either way and it is essentially "sold to the collection agency". Then they will hound you for whatever they can get! Even if or when you pay them this remains against your credit rating! How do you know who the debt collectors are? Especially when the company has closed the account! I'm 62 years old, my identity was stolen and I now realize it was either through a pocket scanner which scans your information or by someone familiar with me. My advice to all Senior Citizens is to keep every paper, every Credit Card, your Soc Sec information locked in a safe! I can not believe I am a victim of Fraud and in calling the " Fraud Dept of one company I was called a liar. What happened is the very day I realized my card was missing I called and 8 minutes away from where I had just made a purchase the person who found my card was making a purchase! Therefore they did not believe me. At 61 years of age my credit was ruined and I can only pray for resolution . The reports , the informative advice here on Kreditkarma.com is helpful, perhaps there is hope. Be safe and yes they should only base your credit ratings on one Credit Check Company they are all three different. 

1 Contribution
1 Person Helped

Helpful to 1 out of 1 people

Great article.  I'm still reading and looking into what else Credit Karma may offer.  

2 Contributions
1 Person Helped

Helpful to 1 out of 1 people

Why you not show credit history from store credit cards. I have 4 of them with good credit. Stoneberry 4 years since 2011. Montgomery Ward, Seventh Avenue and Monroe and Main. Had card with from 2 years.

1 Contribution
2 People Helped

Helpful to 2 out of 3 people

Apparently some people leaving comments are not aware of how the credit bureaus work while others are really aware of them. CreditKarma is a great tool. It is NOT a part of Trans Union so take your complaints to them. Knowledge provided about your score and beyond by Credit/Karma is powerful. Keep up the good work! 

@creditscore_man

1 Contribution
1 Person Helped

Helpful to 1 out of 1 people

Why do all my old closed accounts still show up?  I feel this is keeping my score under 800.

Brian Garfield

blackfootj33@gmail.com

1 Contribution
8 People Helped

Helpful to 8 out of 11 people

i agree with you winner007 my transunion report is 50 points! less than the other 2 credit companies....and i may have caught a mistake with a deferred student loan marked as late payment.

1 Contribution
9 People Helped

Helpful to 9 out of 12 people

my credit report only goes back three years? I should have about 32 years. This only shows my bad times.

1 Contribution
2 People Helped

Helpful to 2 out of 3 people

I recently got an auto loan a couple months ago and my overall credit was much higher than on credit karma. I don't think that the trans union is a great source to check your credit!

1 Contribution
2 People Helped

Helpful to 2 out of 3 people

Insurance companies, pharma's, doctors, all contribute to these frauds! Better think about what you disclose to all these potential frauds!

1 Contribution
9 People Helped

Helpful to 9 out of 13 people

You have listed chase home loan balance of $20,000 this is erroneous . I have a home equity line of $82,000 which was used a few years ageo for a short  time. It was fully repaid. Chase Bank is incompetant and I have a constant battle of getting monthly fees eliminated. The bank gives me a credit for $21 and a few months later it reappears. I intend to move my account to another bank as soon as I move two automatic payments to another bank. I will most likely do this Jan 2013. 

I use one credit card American Express which is paid at the end of every month. 

I do not know of any property  tax lien on any of my properties.

I file my taxes every year and do not have anybalance due.

Please check for  proper info

John Ambrosio

All of our credit report information comes straight from your TransUnion credit report. Check your full credit report at AnnualCreditReport.com for more information.

Review by
CK Moderator

Results 1-25 of 116Results per page: 5 | 10 | 25Page 1 of 5   Previous | Next

Comment on this Article

Write your comment:
Enter Your Comments