Why Your Credit History is Important

One of the items that you have probably discovered in your efforts to improve your finances is that your credit history is important.

Your credit history, usually condensed down to a three-digit number known as your credit score, is used by a wide variety of financial service providers, especially those that lend money.

But why is your credit history so important?  And does it even matter if you don’t plan to borrow money?

Credit History: Your Financial Reputation

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How Many Credit Cards Do You Have?

Credit cards have become ubiquitous as a method of payment.

Indeed, it’s much more common to see a customer pull out a credit card than pull out cash.  According to the Federal Reserve, in 2008 the average cardholder had 3.5 credit cards.  However, I have to admit that I have had many credit cards over my life.

One of the reasons that many of us seem to accumulate credit cards, though, has more to do with trying to keep the credit score intact than anything else.

Collecting Cards for Credit History and Limit

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