A person's credit history is a record of an individual's past financial dealings. Many different items can be included in one's personal credit history, bank transactions, credit card payments, paid and unpaid loans, bankruptcy, etc. Everything on you credit history is reflected in your credit score.
If you have a good credit history, for example, no bankruptcy filings, all loans paid back on time and never missing a credit card payment, then you will have an easier time applying for a credit card, taking out a loan or purchasing a car or home. If you have a unfavorable credit history, for example, someone who has filed for bankruptcy, has unpaid or outstanding loans and does not pay bills on time, then it can be very difficult to apply for loans, credit cards or home or auto financing.
Many students fall in between these two scenarios as they have little or no credit history at all. No credit history is not as bad and poor credit history but in the minds of lenders it's just as risky. When a bank is reviewing a loan they like to see an applicant with a long history of good credit so they can determine an individual's willingness to repay a debt. If you have no credit history at all then this becomes very difficult for the bank to determine.
However, People Capital has a new method of determining willingness to repay a debt, which works to the advantage of students with short or no credit history. The Human Capital Score uses a different set of data to determine predicting a student's future potential income. The Human Capital Score uses GPA, standardized test scores, and choice of college/major to produce a powerful and very concrete credit risk assessment for an individual student borrower.
Using People Capital's Human Capital Score a student can still get a reasonable rate on a student loan even if they have little or no credit history.