Why do Loan Providers put so much importance on a good credit history?
When issuing you with a personal loan, loan providers give you credit. They take this risk based on your ability to repay that money. Your credit history shows how you have repaid loans in the past. This is taken as an indication of how you will repay loans in the future. If you have a good credit history, you are considered low risk. A good credit history can help you get more than personal loan privileges. It can also help get loans for those bigger life purchases such as a car or a house. A good credit history speaks well for you. A poor credit history can be improved over time and people have opportunities to make that happen.
