What Does Credit History Really Mean?

When a lot of people hear the word credit they automatically start thinking of credit cards and loans. Credit history however does not mean that you need to have had a credit card or loan to have built up a credit history. When a company say they will do a credit check on you to see how your credit history is they simply mean they will have to look at your banking history. This usually mean they will be looking at all the ingoing and outgoing of any bank accounts that you may have. They do this to make sure that you have the available funds in your bank account at the end of every month to pay any bill that may arise from owning a mobile contract. Having a basic bank account with a debit card is all you need to start building a credit history. To improve your credit rating you need to have steady income and be making regular payments using your account. Any credit check done on you should be done using the name of your main account. So if you are filling out a application for a phone contract always use the name as it appears on any of your banking information.

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