What is a Credit Check?
A credit check is an inquiry to your credit report to confirm your credit payment history. It is possible to check your creditworthiness to ensure that you have the means to pay for goods or services that a business has been requested to supply. What is a credit report? A credit report is based on your credit history e.g. whether or not you have paid your bills on time. This information includes monthly credit card and loan payment information. Your credit report also includes: Who you are. This includes your name, address and previous addresses, marital status, social security number and date of birth. Your credit. This includes who gave you credit, how much credit was given, when the credit was given and how much you paid, how often and if you paid on time. Public record. This includes any court action that has been taken against you for unpaid bills, tax liens or bankruptcy filings. Inquiries. This is a list of parties that have accessed or inquired about your credit report. This ma
An action taken by a prospective lender to determine if a person is creditworthy is called a credit check. A credit check entails seeking a detailed analysis from a credit reporting bureau or agency. The report usually contains things like date of birth, social security number, current and in some cases previous address, employment history, current employer and income, and payment history for loans and other debts. When a credit check is conducted, payment history is documented through items reported by creditors to credit bureaus, such as timely payments – or lack thereof. If a credit check shows a person to be a poor risk for repaying debt, the loan or charge card may be refused. If credit is approved despite a less than glowing credit check, the amount of the loan or the credit limit may be lowered; the interest rate may be increased, or both. Any time you apply for a loan or a credit card, or attempt to obtain store financing for a purchase such as furniture, the lender will perfor
Basically, my bank told me a credit check maintains information about you and your credit history. This information is gathered on an ongoing basis from many sources that have extended you credit. Lenders, employers, landlords, and other service providers buy that information in the form of a credit check report to help them decide whether to approve your application for a loan, credit card, job, or housing, or to offer you a product or service at a particular rate.
