What is a Credit History?

Credit history is simply a record of how you've handled borrowed money over time. It shows whether you pay your bills on time and how you manage credit cards and loans.

What is in your credit history?

Your credit history includes:

• How many credit cards and loans you have

• Whether you pay on time or late

• How much debt you currently owe

• How long you've had your accounts

• Recent applications for credit

• Problems like bankruptcies or accounts sent to collections

Credit history vs. credit reports vs. credit scores

These three things are related but different:

• Credit history is the record of your borrowing behavior

• Credit reports contain your credit history plus personal information like addresses and employers. They're created by three companies: Experian, Equifax, and TransUnion

• Credit scores are numbers (usually 300-850) calculated from your credit history that help lenders quickly see if you're likely to repay a loan

You can get your credit report for free with KOHO.

Why your credit history matters

Your credit history affects:

• Whether you'll get approved for loans and credit cards

• What interest rates you'll pay

• Whether landlords will rent to you

• How much security deposit you might need

It's also smart to check your credit reports regularly to spot fraud or identity theft.

Good vs. bad vs. no credit history

Good credit history means you pay on time and don't use too much of your available credit. A score above 670 is considered good, and above 800 is excellent.

Bad credit history shows missed payments, maxed-out cards, or serious problems like bankruptcies. Scores under 580 typically mean lenders will see you as risky.

No credit history can be just as challenging as bad credit. Without a track record, lenders can't tell if you're reliable.

How to build good credit

If you're new to Canada or just starting out:

• Try a credit-builder loan from KOHO

• Consider a secured credit card (backed by a deposit)

• Look into having utility or rent payments reported to credit bureaus

• Make all payments on time (this is the most important thing)

• Keep your credit card balances low

With time and consistent good habits, you can build a strong credit history that opens doors to better financial opportunities.

Understanding credit history

Good credit history isn't complicated, but it makes a big difference in your financial life. When you pay bills on time and manage debt wisely, you build a track record that lenders trust. This means better interest rates, easier approvals for loans, and fewer hassles when renting apartments.

Your credit history is something you build over time through everyday financial habits. Check your credit reports yearly, pay on time, and don't max out your credit cards. Even if your credit isn't perfect now, you can improve it with consistent good habits.