A credit history defines the current documentation of debt repayment. This includes total debt load, number of loan lines, and terms of payment. Lenders check out applicants' credit scores to determine whether it is risky to approve applications or not. Also, a credit history helps set the most appropriate terms of the loan. If a client has failed with previous repayments, it spoils a credit history. This may result in low credit scores and, consequently, application rejection.