What is a Credit Check? paprradmin October 16, 2013 Finance If you are new to the world of credit cards and want to know what is a credit check, you have arrived at a right place. Credit check is done by the land lords, lenders and employers to deal with their applicants on a professional basis. Generally it involves with the checking of the indented person’s credit history. This will help them know whether or not any individual is worth to take the credit risk. How does a credit check work? Credit checks are normally done by contacting the respective credit bureaus and ordering for a credit history that belongs to any specific individual. This action can be done either for free or with the little fee depending on the person who claims for the report. To state for an example, normally land lords are allowed to claim a free credit report online. But the large lenders and banks need to pay for getting the comprehensive report. Contents of reports include individual’s birthday, previous and current addresses, employment history, social security number and many more. More importantly, these reports will include the person’s total income, history of paid loans , outstanding loans etc. These details help the investors to know about the individual’s capacity to repay the loan and his/her credit worthiness etc. When credit check is done? So you now know what is a credit check. Do you have a question when it is done? Obviously, credit check is done whenever you apply for a loan, mortgage or credit cards. Now a day’s even the potential employers do a credit check on their applicants. So without any doubt, purchasing even a laptop, furniture or car will result in the credit check. One of the most obvious reason behind the credit report check is done at the time of submitting your credit card application. Credit report and the 3 digit magical credit score serves as the main factors which decides whether or not the individual can be allowed to transact a debt But Of course, having the unsatisfactory credit score will not necessarily mean that the person will not get qualify for the applied loan. The higher the score, the better the interest rates. For example when you apply for a loan with 800 credit score , literally it means you have the higher chances of getting the low interest rates with attractive offers. So always strive to get the high interest rates as possible. Leave a Reply Be the First to Comment! Notify of new follow-up comments new replies to my comments You must be logged in to post a comment. You must be logged in to post a comment.