You should know that credit history or credit report is a record of an individual's or companies past borrowing and repaying, including information about late payments and bankruptcy. The term "credit reputation" can either be used synonymous to credit history or to credit score. When a customer fills out an application for credit from a bank, store or credit card company, his or her information is forwarded to a credit bureau, along with constant updates on the status of his or her credit accounts, address or any other changes you may have made since the last time he or she applied for any credit.

Lenders such as credit card companies to determine an individual or entity’s credit worthiness use this information; that is, determining an individual's or entity's means and willingness to repay indebtedness. This helps determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR). Also, it is very important to know that credit ratings are determined differently in each country, but the factors are similar, and may include:

- Payment record.

- Control of debt

- Signs of responsibility and stability - Lenders perceive things such as longevity in the borrower's home and job as signs of stability.

- Re-Aging - Through re-aging, a credit history is re-written and you are given a fresh start on that particular account. This can dramatically improve the credit score

- Credit cards that are not used