A credit history is a record of a person’s payments to creditors. This record is called a credit report. A credit report contains the credit profile of a person. This profile includes the number of open and closed accounts, how long accounts have been open, how much is owed on each account, delinquent payment history, and inquiries for new credit. Additionally, bankruptcies, judgments, and collections are included in a credit report.
A FICO score is also an important component of a person’s credit. It sums up someone’s creditworthiness in one score. The higher a person’s FICO or credit score, the more access to credit they will have, and the lower their loan interest rates will be. Credit scores are dynamic and can be improved.