Why do Lenders pull credit?
When a lender is evaluating you for a loan, your credit history is one of the most important factors in determining your credit worthiness. Your credit history will show the debts you own and your ability to pay them. This helps the lender determine their risk, meaning how likely you are to repay your debts. The credit report will also show any items on public records including liens, bankruptcies, foreclosures, etc. To get your credit report, a lender will order a credit report from a credit bureau. The credit bureau will then return your information or score back to the lender. There are three main credit bureaus in the United States. They are: * Equifax * Trans Union * Experian These bureaus do not approve or deny you for a loan. They simply report your credit information. The bureau may include a credit score with your credit report.
When a lender is evaluating you for a loan, your credit history is one of the most important factors in determining your credit worthiness. Your credit history will show the debts you own and your ability to pay them. This helps the lender determine their risk, meaning how likely you are to repay your debts. The credit report will also show any items on public records including liens, bankruptcies, foreclosures, etc. To get your credit report, a lender will order a credit report from a credit bureau. The credit bureau will then return your information or score back to the lender. There are three main credit bureaus in the United States. They are: Equifax Trans Union Experian These bureaus do not approve or deny you for a loan. They simply report your credit information. The bureau may include a credit score with your credit report. For more information on credit scoring go to the credit score topic under borrowing basics.
When a lender is evaluating you for a loan, your credit history is one of the most important factors in determining your credit worthiness. Your credit history will show the debts you own and your ability to pay them. This helps the lender determine their risk, meaning how likely you are to repay your debts. The credit report will also show any items on public records including liens, bankruptcies, foreclosures, etc. To get your credit report, a lender will order a credit report from a credit bureau. The credit bureau will then return your information and credit score back to the lender. There are three main credit bureaus in the United States. They are: • Equifax • Trans Union • ExperianThese bureaus do not approve or deny you for a loan.Frequently Asked Questions (FAQs) They simply report your credit information.
