A credit check is a process used to determine an individual’s creditworthiness. It is an essential step in every loan, and mortgage, application process. Credit checks are usually performed by a lender or creditor to help assess the risk of extending credit to an individual.
When a credit check is performed, the lender will look at the individual’s credit score, payment history, current debts, and other financial information. This information helps the lender determine if the individual is likely to repay the loan. Credit checks are also used to check for signs of fraud or identity theft.