Credit Score Basics > What is personal credit history?

What is personal credit history?

4 minute read · Updated 21st April 2024

Your personal credit history is a record of how you've handled debt, including credit cards, mortgages, and other loans.

Your credit history includes information like:

How much debt you've taken,
Whether you've paid that debt on time,
And what happened if you didn’t.

It doesn't just include information about loans, mortgages, or credit cards, but also other kinds of obligations.

Essentially, every time you assume an obligation to pay something, it might get included in your credit history. So things like rent or utility bills can also sometimes be included. The different credit agencies even include different things. For example, Experian accepts rent reporting, while TransUnion doesn't.

Is credit history the same as credit report?

Not really. "Credit history" is just one of the things that go into your credit report.

Three agencies in the UK gather data on your credit history and other information and then put together your actual credit report: Equifax, Experian, and TransUnion.

This credit report is what lenders and other companies look at when deciding to offer you credit. It's also the basis of your credit score.

Your formal credit report contains more than just your credit history, though. It also has information on:

your personal details, especially your address history;
whether you're registered to vote;
your current bank accounts (although not how much money you have in them);
whether you have any financial associations (for example, a joint account with your partner);
whether anyone has looked at your credit report in the past two years.

Your credit report and credit history have another significant difference: your credit report only covers the last six years.

Once six years have passed, things like unpaid debts, defaults, bankruptcies, and so on are removed from the record.

In contrast, your credit history, being informal, doesn't really have an expiration date.

This matters because occasionally, a lender might ask you if you've ever declared bankruptcy. Even if it's been more than six years and it's not visible anymore on your credit report, you still have to tell them—it's a part of your credit history.

How does my credit history influence my credit score?

A good, rich credit history usually means a good credit score. A thin or bad credit history means a poor credit score. This is because your credit history is the main factor when calculating your credit score.

To build a rich credit history, you need to enter into credit agreements and ensure that these agreements are reported to the three credit reference agencies.

To build a good credit history, you have to make repayments on time and in full and not miss any payments. You should also avoid using too much of the credit available to you, or else lenders will think you're in financial trouble.

There are many ways and tools to achieve these two goals, but one of the easiest and safest ones is to download a credit-building app like Wollit.

Wollit reports your monthly subscription as loan repayment, making sure that you always pay it on time, and that it's an amount you can afford.

There are also parts of your credit history that don't impact your credit score but are recorded in your credit report for lenders to see when making their decisions. As mentioned above, rent is one of them – and Wollit also helps you report it to Experian.

Even some of the things you do that aren’t part of your credit history can have a big impact on your credit score.

For example, being registered to vote at a specific address. It has nothing to do with loans, but it does make it easier for lenders and credit reference agencies to verify your identity.

As a result, simply getting on the electoral register can add up to 50 points to your credit score. For more tips on improving your credit score, check out our credit building guides.

Why is credit history important?

Your credit history goes into your credit report, which is then used to calculate your credit score. This, in turn, will help you get more loans, on better terms, and with lower interest rates.

But that's not the only way it can impact your life. You might need a good credit history in many other situations:

Insurance companies may look at your credit history when setting your insurance premiums.
Landlords and letting agents may review your credit history when you apply to rent a flat.
Utility companies may look at your credit history when you open an account, and use this information to decide whether to ask for a security deposit.
Employers (especially in finance) may also check your credit history before deciding whether to hire you.

How can I build my credit history?

There are a few things you can do to build your credit history:

Get a credit-building credit card. While it may be expensive, a card like this can be a good tool for building a history of repaying debt on time.
Take out a small form of credit. Credit-building apps like Wollit are ideal for this since they don't come with the risks of a traditional credit card or loan.
Pay your bills on time. You can also use Wollit to report your regular rent payments. You can even make your Netflix and Spotify subscriptions count if you use something like Experian Boost.
Pay by direct debit wherever you can. This is the best way to make sure you don't miss a payment.
Only use 25% or less of your credit limit. So, if you have a credit card limit of £1,000, try not to spend more than £250 on it.

How can I check my credit history?

While no tool can check your full credit history from the beginning of your life, you can request a copy of your credit report to check the last six years of it.

The easiest way is to get your Statutory Credit Report from the main credit reference agencies. It's also free to do it. Just go to these pages and apply online:

This is not the only way to get your report, of course. There are also third-party sites like Credit Karma, ClearScore, CheckMyFile, and others. The important bit is not which report you look at, or from where.

The important thing is that you get your credit report, check and fix any errors you might see there, and take steps to build or repair your credit history.