Credit History - All You Need To know

Learn more about how your credit history impacts your financial journey and how insights from Bajaj Finserv Credit Pass can help build your credit health.
Credit Pass – Rs. 99 for 12 months
2 min read
20 July 2023

It is important to understand the significance of credit history and how it affects our financial well-being. In this article, we will look at the essential aspects of credit history, what it means for you, and how you can build a solid credit score to achieve your financial goals. So, let us get started!

What is credit history?

Credit history is a record of your past borrowing and repayment activities. It includes information about your credit cards, loans, mortgages, and other financial commitments. When you apply for a new credit card or loan, lenders refer to your credit history to assess your creditworthiness and determine the risk of lending to you. A positive credit history indicates responsible financial behaviour, while a negative one may lead to loan rejections or higher interest rates.

The importance of credit history

Your credit history plays a pivotal role in determining your credit score. This three-digit number is a numerical representation of your creditworthiness, ranging from 300 to 900, with 750 or higher generally considered ideal by most creditors. A high credit score indicates responsible financial behaviour and makes you an attractive borrower to lenders, leading to better chances of loan approval and favourable interest rates.

Factors affecting credit history

Several factors impact your credit history and credit score:

  • Payment history: Timely repayments of your credit obligations contribute positively to your credit history. Make sure to pay your bills, EMIs, and credit card dues on time to maintain a healthy credit score.
  • Credit utilisation ratio: This ratio reflects how much credit you have used compared to the total credit available to you. Aim to keep your credit utilisation below 30% to show responsible credit management.
  • Length of credit history: The longer your credit history, the more it works in your favour. Avoid closing old credit accounts as they add to the overall length of your credit history.
  • Credit mix: Having a diverse mix of credit, such as a combination of credit cards, personal loans, and secured loans, can positively impact your credit score.
  • New credit applications: Frequent credit applications in a short period can raise concerns for lenders, potentially lowering your credit score.

Building and maintaining a positive credit history

Building a solid credit history requires discipline and responsible financial behaviour. Here are some tips to help you get started:

  • Pay bills on time: Timely bill payments are crucial in establishing a positive credit history. Set reminders or use auto-debit facilities to ensure you never miss a due date.
  • Monitor credit utilisation: Keep your credit utilisation ratio below 30% to show lenders that you are responsible with your credit.
  • Limit credit applications: Avoid making too many credit inquiries within a short period. Multiple inquiries can signal financial distress to lenders.
  • Regularly check your credit report: Obtain a free credit report annually and review it for inaccuracies or fraudulent activities.

Your credit history plays a significant role in shaping your financial future. Maintaining a positive credit history and a good credit score can open up a world of opportunities, providing access to better financial products and services. Bajaj Finserv Credit Pass is a valuable tool to help you build and maintain a good credit score. This unique CIBIL-powered offering provides you with a comprehensive overview of all your credit accounts in one place, making it easier for you to monitor your credit health and track the factors that impact it. Alongside monthly CIBIL Score checks and tools such as the Credit Score Simulator and EMI Calculator, you have everything you need to proactively build and maintain a positive credit history. So, take charge of your financial journey today and pave the way for a brighter and more secure financial future.


While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies are observed, please click on reach us.

*Terms and conditions apply

Frequently asked questions

Where do I get my credit report free?

You can obtain your credit report for free from any of the credit agencies, such as Experian, CIBIL, or Equifax, once a year. You can sign up for a free report by visiting their official website. You can also sign up for the Bajaj Finserv Credit Pass, which provides monthly CIBIL Score, personalised credit dashboard, and more.

Is there any kind of limit for accessing a credit score?

There is no limit to the number of times you can view your credit score. You can check your CIBIL Score to monitor your credit health as a soft enquiry. However, multiple hard enquiries from lenders to assess your loan applications to check your credit score in a short period of time can be detrimental to your credit history.

Is it possible to delete credit report information?

Accurate credit report information cannot be deleted. If you discover inaccuracies or inconsistencies in your credit report, you can dispute them with the appropriate credit bureau and request the rectification of those errors.