Credit Check
An examination of a person’s creditworthiness, as may be performed by a prospective lender.
When you are seeking credit from a bank or other lender, you can expect them to perform what is known as a credit check – an examination of your past credit history, otherwise known as your record of paying debt. This helps them to determine how much of a risk you will be as someone to whom to lend money.
What does a credit check entail?
A credit check involves looking at the individual’s credit report, which can be requested from companies known as credit reference agencies (CRAs) – the three main ones being Experian, Equifax and Callcredit. A person’s credit report typically includes a list of their credit accounts, details of any people financially linked to them, and public record information such as bankruptcies, house repossessions or County Court Judgements (CCJs).Practical Application Example
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A credit report includes details such as your electoral roll information, aliases, financial associations, public record information and credit account information. ”
