If you want to apply for a loan, this keyword plays an important role: the credit check. It is the basis for granting a loan and the conditions that the lender offers you. But what is it all about? Here you can find out what is behind the credit check and what needs to be considered.
Credit check: what about your creditworthiness?
The term creditworthiness describes your solvency. How reliably do you pay your bills and do you meet all your obligations? These questions are central to your credit rating. A credit check checks how creditworthy you are. Potential contractors will check this before they make you an offer. These include lenders with whom you are hoping for a loan, but also online shops where you want to order something on account.
During a credit check, your personal data including name and address and your payment behavior in the past will be checked. The company from which you want to have a loan or from which you want to buy a product or service carries out the credit check.
Are there any entries about you?
If you have applied for a credit or a credit card in the past, it may be that there are entries about you in the register of the association for the management of a central office for credit information, ZEK for short. This also applies if you were or are a lessee. To check whether there are entries, you can order a database extract.
That is why the credit check is important
A potential lender, bank or online shop uses a credit check to ensure that you are creditworthy. Depending on how the credit check turns out, you will be offered different conditions.
For example, you will be asked for negative entries where you did not meet your payment obligations in good time. Your age also plays a role. The company in question uses the information to determine how likely it is that you will pay on time.
If the credit check is good, you will receive the best conditions. If you have negative entries in the ZEK register, this can lead to you only receiving loans with poorer conditions. The interest is then usually higher. A lender may also completely reject your application. A credit card or a leasing request can also be refused.
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