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What is Your Credit History?

Your credit score can be confusing. After all, in its essence, it’s a three-digit number that seems to have come out of nowhere. But this seemingly innocuous three-digit number can be the deciding factor in whether or not you get the house of your dreams, or you have to settle for a smaller home. It can determine whether you get the new car you want, or whether you’re stuck with your old one a while longer. It can also be a factor in your job, in your car insurance, and in whether you have to put a deposit down for utility service. 

For all of the aforementioned reasons and more, your credit score matters. One factor in your credit score is your credit history. Optimal Credit, a credit repair business based in Los Angeles County but serves all of the United States, offers credit repair services for those whose credit is low or for those who merely want a higher credit score. In this blog post, we’ll examine what exactly is credit history and why it matters. Contact us today to get started!


Credit history is basically just that — a history of your credit accounts. Along with your credit account, your credit history includes how long you’ve had these credit accounts, how much credit is available on these credit accounts, number of recent credit inquiries, and when your payments were made (mainly if they were on time or not). There are also miscellaneous reportings that is included in your credit history, such as bankruptcies, liens, garnishments, or judgments against you.


As the saying goes, the best predictor of future behavior is past behavior. Hence, if you’ve been making on-time payments to your current lenders and you have a reasonable, but not an exorbitant amount of debt, this speaks to how you’ll behave in the future. This is important because lenders are taking risks by lending you money because if you default, or don’t pay your debt, they are out that money. Too many bad loans like this can put your lender out of business. Hence, by using your credit history, lenders can mitigate their exposure to bad debt and potential losses.

Length of credit history matters as well to lenders who are looking for these behavior patterns in order to help determine risk level. That’s why starting credit history while you’re young is crucial to being able to obtain loans in the future.


Optimal Credit serves the Los Angeles County area, as well as nationwide, by offering the best credit repair services. We offer many different packages to suit what you are looking for in a credit repair company. Hence, whether you need to raise your credit score 200 points or 20 points, we have the perfect credit repair package for you. We offer free initial consultations in order to help you determine which credit repair service is best for you. Visit us online, and order today!

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