Definition - What does Credit History mean?
Credit history is a detailed record of a person's repayment activity when it comes to his or her debt. Credit history reflects a person's ability to repay debt. It is used in credit scores and loan evaluations. Legally speaking, credit history is critical information for lenders to use as an evaluation tool. Tampering with it can result in punishment.
Justipedia explains Credit History
Credit histories can reveal a lot of information about the borrower. Some of this information includes amounts owed, whether bills are paid on time, credit inquiries, bankruptcies, etc. These histories help to make up a person's FICO score.
FICO scores help lenders to have a much better understanding of the potential borrower's habits when it comes to repaying debt. If lenders can better understand a borrower's habits, they can better understand the risk associated with the individual borrower.