A credit check is a lender's review of an applicant's credit history and credit report when they apply for credit. It helps the lender assess how the applicant has handled borrowing in the past.
A credit check, or credit inquiry, is a review of an applicant's credit report, usually obtained from one of the major credit bureaus, to help a lender evaluate a request for credit. Credit checks come in two forms: a hard inquiry, tied to a formal credit application, which can affect the credit score, and a soft inquiry, such as checking one's own credit or a prequalification, which does not affect the score. Some lenders weigh the credit report heavily in their decision, while others review factors such as income and ability to repay instead. A no-credit-check loan is one that does not rely on a traditional credit report.
