What is a primary reason creditors review a person's credit history?

Creditors review a person's credit history primarily to offer new credit or check existing credit status. This process involves evaluating the individual's creditworthiness, which determines how likely it is that they will repay borrowed money. By analyzing the credit history, creditors can assess various factors, including payment history, the amount of debt currently held, and the length of the credit history. This information helps them make informed decisions about whether to extend credit, how much to offer, and at what interest rate. The overall goal is to manage risk effectively because they want to lend money to individuals who are likely to repay it on time.

The other options reflect activities that can be associated with credit history but do not capture the primary reason creditors examine it. For instance, while assessing the risk of providing insurance and evaluating rental applications can involve looking at credit history, the direct link to offering new credit is more fundamental to the creditor's purpose. Moreover, determining interest rates on utility bills typically does not rely on a person's credit history in the same way that other forms of credit do.