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WHAT IS CREDIT HISTORY?
Credit history is a history of how you have paid off your debts and obligations. It is comprised of credit card payments, loan payments, etc.
You can find more definitions pertaining to credit in our Dictionary section here: dictionary of credit terms
WHY IS CREDIT HISTORY IMPORTANT?
Your credit history shows a potential lender your past performance of debt payment - how successful you have been in managing your debts. By looking at what you have done in the past, a potential lender will "guess" what you will do in the future.
IF YOU ARE GETTING AN FHA LOAN
In recent times, the FHA (this term is defined in our Dictionary section here: Federal Housing Administration) has tightened its credit requirements. This is a sign of the economic times.
You can read about FHA loans here on the official website here: FHA.
Generally, the FHA may be more flexible than conventional lenders in its qualifying guidelines. You can read about FHA loan credit issues here: FHA loan credit issues
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