How A Credit Check Can Affect You
A credit check is usually run by a lender or potential lender who needs to know what sort of credit risk you are. If you ask your bank for a mortgage, for example, or if you seek financing for a new car at a dealership, a finance manager at one of these places will run a credit check on you, usually by asking your permission to do so (if you apply for a loan, in most cases, the application form does constitute you granting permission for a credit check). A potential employer or government agency may also run a credit check on you. Insurance companies also routinely run a credit check before accepting a new client. There are several things people will look at when running a credit check on you. They will generally seek you credit score, or a number between 350 and 850 which gives a quick snapshot of your credit history. Someone running a credit check on you will also likely check your credit history, which may include the other loans you have out, the frequency with which you repay your debts, any payments you have missed, and any bankruptcy you may have filed. This information may make the reader of your credit check more certain whether you can handle another loan or credit responsibly. Lenders or others running a credit check on you can also usually see how often your credit report has been accessed. Most lenders see it as a bad sign if you have had a credit check run frequently but have had few credits or loans given to you. This makes lenders think that you have been rejected by other lenders already and may make them more likely to give you higher rates or reject you as well. If you know that someone will be running a credit check on