Credit history is a reference about a person's financial profile which indicates the creditworthiness of a customer. The history consists of a series of information about payments debts of a borrower that are used to establish your ability to pay if Ask for another loan.

This information is collected by companies called credit bureaus.
Some of the information the consider credit bureaus are the amount of debt that a person has, his story
of payments on time and payments in arrears, data about her occupation and place of employment, and
the demographics of him.

Based on the information in your history, each person is assigned a credit score. The score is a number that represents the repayment capacity of the borrower. In each country there are laws that frame the operation of credit bureaus.

If you have a low credit score, a creditor may not want to lend you money. Conversely, if you have a good credit history, a creditor is likely to want to lend you money.

Creditors rely on credit scores to determine the trustworthiness of their potential borrowers. Having a good credit history allows you to access credit and the better the history, the more options you will have.

Many times a creditor requires that the borrower show a guarantee that proves that he will be able to pay the debt. It can be a bond or jewelry with a fixed value or it can be a house or a car. In the event of default, the creditor may obtain that guarantee from the borrower.