Definition
A credit check is a request for an individual’s credit report to verify financial responsibility.
Analysis
A credit check is normally conducted by a lender prior to granting credit. Credit checks may also be conducted by other parties that have a permissible purpose, such as employers, landlords or insurance companies.
A credit check typically includes a credit score as well as a credit report on the individual or the business. The request for a credit report will result in an inquiry being recorded on the credit report, which may affect the credit score depending on the purpose of the credit check.
