Credit history is like a record of how you've handled credit, like loans, in the past. It's like when you get a report card in school and it shows what grades you got and how you did in your classes. Credit history looks at things like if you paid your loans and bills on time, how much debt you have, and what kinds of loans and credit cards you've used. Banks, lenders, and other services use this information to decide if they should trust you and if they should lend you money. They want to make sure you are responsible with credit so they can make sure they will get paid back.