credit check

A credit check is a process where a lender or organization reviews your financial history to assess your ability to repay a loan or credit. They look at your credit report, which details your past borrowing activity, debt levels, payment history, and how responsibly you've managed credit. This helps them determine the risk of lending to you and decide whether to approve credit and under what terms. Conducted with your permission, a credit check provides valuable insight into your financial habits and helps ensure responsible lending.