The Role of Your Credit History in Getting a Loan


Being a trustworthy person in the eyes of banks means having a good payment history, which proves your responsibility towards the obligations assumed before the creditors. But the credit score takes into account this and the age of your credit history. The mere presence on the credit market represents about 15% of your credit score, which is a noteworthy aspect.

What does your credit history include?

In short, the age of your credit background encompasses all the temporal aspects of your credit history. Three key things are considered:

  • how long have you had credit accounts open, from the first loan you obtained to the most recent one, but also taking into account the average age of all your loans;
  • the age of each credit account, including inactive ones;
  • the time elapsed since the last use of your credits;

People with a long-term credit history are generally considered more reliable because they have proven over time that they can apply for and obtain multiple loans, which they can then repay successfully. For this reason, young people tend to have lower scores, even if they have complied with all credit conditions.

However, it should be noted that long seniority does not automatically lead to a good credit score. Paying on time, using the credit limit responsibly, and diversifying your credit types can help you get a high score even in the absence of a long history.

What can I do if I don’t have a credit history?

The credit history is reflected in the credit score only after six months from obtaining the first loan, so someone who has just received the first loan or has not benefited from loans so far will appear as not having a history from banks’ point of view. However, even in this situation, there are a few things that can be done to get in the way of credit institutions:

Obtain a loan from a bank where you already have a debit card or savings account

If you already work with a bank, this means that the institution already has you in their database, so in general, they will be more willing to give you the first loan. You will usually need a job and a fair salary. It also helps if your remuneration is transferred directly to an account related to that bank.

Apply for a shopping card/fuel card

These types of loans usually offer low limits and high-interest rates but are open to a wide range of consumers. If you are at the beginning of the road, such a card can help you build your history quickly – just keep in mind the conditions imposed by the issuing institution. Our recommendation would be for a person to have a history of at least seven years. It means that if at least seven years have passed since your first loan, your reliability as a potential customer is viewed favorably by the bank. Of course, the more experience you gain in the market, the more banks and direct lending companies will struggle to have you as a customer.