Some Bits from Credit Card History

09/21/2007
Credit History

It might seem that credit cards appeared just recently. Seems like almost yesterday. But it is just an impression. Just think, since the 19th century people have been buying things on credit. Back then credit reports already played a significant role.

Certainly, the process of applying for a credit was somewhat different, but the whole principle was the same. You may buy now - and pay later. What was always very important - is checking your credit report. It was studied as thoroughly as it is done at the present time.

What were the criteria so important for the lenders back then? And what are these criteria today? The answer is very simple: they all check your financial state to make sure that you will be able to pay the money back.

Therefore, the fact of getting a credit largely depends on the information in your credit report. That is why every applicant for a credit card is advised to closely watch his/her credit report, so that to be sure that you are eligible to apply for a "lucky" credit card with low APR.

It is an interesting fact that some regulations have preserved throughout the time up to the present day. Some of them still influence the creditors' decisions. So, what are they? Be it the year 1830 and you have found yourself having no money - you might buy in credit. Since it is the year 18 30 this fact is recorded on a piece of paper. You carry this paper in a special tube - always with you. It is a proof that you are a debtor.

Since the progress never keeps us waiting, carrying this special tube was admitted rather inconvenient. And somebody came up with an idea that it is very rational to collect all the information into one document. This document we call a credit report. In case your credit score meets the requirements of your creditor, you will be given a credit. Otherwise, no.

Back then the "credit report" contained primarily negative information, even some facts that are not allowed to be stored in today's reports. Just imagine, it contained even your criminal record, which is not acceptable today. And, certainly, the source of information was not always reliable. I mean, nobody checked the very correctness of the data - just nobody was responsible for it. Nowadays we have credit card bureaus.

With time it became clear that credit report needs some special order. And the first credit reporting agency appeared. Such agencies nowadays collect all the information, except the following: your health, your race and religion, your income, your driving license and your criminal records.

All the creditors want to be sure in one thing - your creditworthiness. They all rely on you if the credit history is not spoilt. There are examples when people failed to repay their debts, but there are magnificent examples as well. You just have to be realistic about your business plans.

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