subject: Credit Check - What It Reveals About The Consumer [print this page] Credit Check - What It Reveals About The Consumer
When someone applies for vehicle financing or perhaps a store account, a credit check is performed by the lending institution. If a person for instance, wants to open a new clothing account at one of the clothing chain stores, the applicant will have to complete an application form stating their current contact details, employment information, income, and other credit accounts. The store accounting division then does a credit check.
What does the credit check reveal?
It provides a complete picture of the creditworthiness of the applicant. The credit check can be very basic, only stating whether the person is listed at any of the credit bureaus for bad debt, late payments, bounced cheques or returned debit orders. The credit check however, can also be rather comprehensive stating information such as:
Identification number or social security number of the individual.
Place of birth.
Current employment and employment history.
Current residential address and the last few residential addresses.
Current income.
List of other creditor accounts including home loans, vehicle finance deals, credit cards, personal loans, overdraft facilities, service contracts, and store accounts.
Whether the person is married within community of property or with a contract.
Complete payment history of debts and loans including any defaults on payments.
The credit check normally is done through credit bureaus where consumer credit information is kept. Judgments and unpaid judgments come up on the credit check, how many credit checks have been performed in the past few months and by whom, as well as lack of payment and more.
As such the credit check gives a thorough indication of the in-debt status of the individual, financial stability, reliability when it comes to payment of accounts and more. If a person is a poor risk the creditor may still choose to extend credit, but at a higher interest rate or request more security for the loan or account.
