What Common Activities Can Affect Personal Credit History?

Your personal credit history is maintained by the three primary credit reporting bureaus, Equifax, Experian and TransUnion. It contains a record of all your borrowing and any negative activity such late payments and legal actions like foreclosure. Your personal credit history is a prime contributor to your credit score, which helps determine how low an interest rate a lender can offer you.

Your Payment Habits

It is common for credit card borrowers to pay only minimum amounts on their monthly statements. But as you do this your balance increases because of the high interest rate. That, in effect, means you are borrowing more and that will be reflected in your personal credit history and can drive your credit score down.

Frequent Applications

Some people continually look for a better interest credit card or a good introductory offer to move credit card balances and reduce monthly payments and interest. While a good idea in theory, your personal credit history reflects all applications. If you have multiple applications, even though you are reducing your overall debt obligation, you are increasing your overall borrowing capacity, and that can lower your credit score as well.