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Credit History
A record of an individual or business entity's past loans, payment information, and financial condition such as a bankruptcy is referred to as a credit history. Normally the details of past financial dealings are investigated upon application for a loan of any type or for the issuance of a credit card.
The information contained in the credit history is used by various lenders to make a determination of creditworthiness. This is simply a conclusion as to whether or not the individual or business has the ability to incur debt and to repay that debt. Normally the key aspects of the determination of the viability of a credit history involve such factors as payment record, control of debt, and evidence of stability and responsibility.
Taken in its broadest sense, the credit history of an individual or business is the basis for a determination of that person's (or entity's) ability to take on and to be responsible for debt.
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