---
title: "Credit check: definition | Desert Rock Capital"
url: "https://www.desertrockcapital.com/glossary/credit-check"
description: "A credit check is a lender's review of an applicant's credit history and credit report when they apply for credit."
---

Credit & approval

# Credit check
All lending terms
Definition

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.

Source: [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/ask-cfpb/when-will-a-lender-run-a-credit-check-or-obtain-a-copy-of-my-credit-report-en-322/). This definition is general educational information, not legal or financial advice.
Related

- [No credit check loans](/services/no-credit-check-loans)
- [Loan FAQs](/faqs)
- [Signature loans](/services/signature-loans)
Back to the Lending Glossary
More in
Credit & approval
Credit score
Hard vs soft credit inquiry
Underwriting
Ability to repay
Cosigner
Borrow with clarity

## Terms in writing, before you sign.

Desert Rock Capital is a licensed Utah lender with no credit check and no collateral. Apply online or visit a branch in Salt Lake City, Orem, or St. George, and get a straightforward decision, usually in about 30 minutes.
See if you qualify