Credit Checks

Re: Credit Checks

Credit checks are background checks which are performed to select someone's credit worthiness. The first is a credit score, a number which is designed to provide a fast hit of knowledge about the applicant. Any time somebody applies for a credit card, for example, a credit check is performed by the issuing agency. A credit check may even be run when somebody signs up for a utility account, such as electricity, gas, or phone. The loan officer will select the amount of loan which the applicant can afford on the basis of the credit check, & people with a low credit score may be asked to pay a higher rate of interest, as they represent a credit risk in the eyes of the loan officer.