It is a type of financial report detailing how well (or poorly) you manage credit and debt in your name, rather than through other people such as parents or grandparents. The better your credit score, the more likely you are to receive favorable terms from lenders when applying for loans or mortgages. If you have a bad credit record, then you'll find that getting approved for a loan or mortgage is much harder.
Your credit history can affect every part of your life, including:
• Getting a loan or mortgage
• Buying household goods like mobile phones or computers
• Paying bills on time
• Renting property
• Getting insurance, etc.
Credit history is a very important aspect of your future life as an adult. It's not the only thing that matters, but it is one of the things that will be looked at by banks when you are trying to get a loan or mortgage. This means that if you want to become a homeowner in the near future, you need to ensure that you don't mess up your credit rating!