Credit Checks- Knows and How’s

Steven Penland   September 11, 2015   Comments Off on Credit Checks- Knows and How’s

When you hear the words ‘credit check’ your mind automatically goes to a dark place where you think your Identity is being stolen or are being accused of fraud. If so, oh dear are you wrong. So here we clear up the confusion of what exactly a credit check is. A credit check or a credit report is a history of your financial behavior. If you took out a loan, applied for a new credit card or opened a new account, this all appears in your credit check. It’s simply information about your financials and having a check does not mean you are a fraudster, check this reference check agencies.
What goes in?
There is much confusion as to what goes in to a credit check, now this varies based on who carries out your check but most of the time there are the core details included. They having identification details, they need to establish that you are who you say you are. They will have your basic information such as where you live, who you live with and who your family is. Usually they don’t go too deep into this section as it is not the main focus of the check. They will also include information on your school and educational background in order to see if it all tallies up.
Then they will have your credit history. Here any information in regards to your repayment of debt, should you have any, will be shown. Some checks also include your credit score as well which is a mathematical equation which tells you how credit worthy you are. A credit check will always include public records and should you have a public record this will appear in the check. This will include past criminal convictions or charges against you and legal disputes.
Then some credit checks will also include past inquiries. This is to see who has ordered checks on you in the past and to see what sort of associations you have. This is mainly to see if any other persons have an unusual interest in you such as banks or lawyers
Who orders credit checks?
Generally, credit checks are ordered by someone who is about to enter in a contract or agreement with the person being checked out. This incudes, prospective employers, prospective landlords, banks and prospective business partners. This checks are conducted to make sure there is no stone unturned when looking in to a prospective employee or tenants etc. however credit checks though available in the commercial market, is still a private affair. Thus in order for most credit checks to be carries out there must be permission from the person being checked out. So now most of the confusion in regard to credit checks and cleared up and now you know, if you don’t give permission, a credit check can’t happen.