Month: September 2025

What Is a Credit History and Why It Matters

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Your credit history is like a report card of how you’ve handled borrowed money. Banks, lenders, and even landlords use it to decide if they can trust you with credit. A good history opens doors — a bad one can close them fast.

✅ 5 Things to Know About Credit History:

  1. It records how much you borrowed and how well you repaid.
  2. Late or missed payments stay on your record for years.
  3. It influences your credit score, which lenders use for decisions.
  4. No history at all can also be a problem — they can’t judge you.
  5. Building a good record takes time, but bad habits damage it quickly.

👉 Credit history is your financial reputation — guard it carefully.

What Is an Overdraft and How It Works

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An overdraft is when your bank lets you spend more than you have in your account. It’s like a short-term loan that kicks in automatically. While convenient, overdrafts can be costly if you don’t manage them carefully.

✅ 5 Things to Know About Overdrafts:

  1. The bank covers your payment even if your balance is too low.
  2. You’ll pay fees or interest on the borrowed amount.
  3. Some banks charge daily until you repay the overdraft.
  4. It’s helpful in emergencies but expensive for regular use.
  5. Repeated overdrafts can hurt your relationship with your bank

👉 An overdraft is a backup tool — not a main way to borrow.