Someone asked me for a credit check. What does this mean?
Question & AnswerSomeone asked me for a credit check. What does this mean?
If someone asks you for a check, it means they want to see a copy of your .
Often, someone asks for a credit check before they decide to:
- lend you money, which is called giving you credit
- give you a credit card
- rent you a house or apartment
- hire you or promote you at work
- sell you insurance
- do other business with you
Your credit report is a detailed history of how you have paid your bills—things like your credit cards, hydro bills, rent, and any loans you have. Your credit report is used to calculate your . Your credit score is used to predict if you will be able to pay back what you owe and make payments on time.
A credit report includes both credit information and the reporting agency gathers about you. For example, the agencies track when and if you pay your . They also use information from public sources, like court records.
Your credit report contains information about your credit cards and loans, such as:
- when you opened your account
- how much you owe
- whether you make your payments on time
- whether you miss payments
- whether you go over your
- what the limit on the debt is (for example, if your credit card limit is $1,000)
You have the right to correct and check the information on your credit report. Equifax and TransUnion must give you a copy of your credit report for free once a year if you ask. It is a good idea to check your credit report regularly.