When do businesses credit check you?

Every time you apply for credit, whether it is a store card or a mortgage, the financial provider supplying the credit will run a credit check on you. This enables them to make a fairer and safer decision on whether to give you credit and sometimes it can affect the interest rate they offer to you.

You may not realise it, but your credit report is utilised for more than just applying for credit. If you use a letting agent to rent a property they are likely to run a credit check on you before they rent you a property. This is done for two reasons, firstly, to establish that you are who you say you are and secondly, to find out whether you are likely to be a reliable tenant. If you pay all of your current credit commitments on time then you are likely to keep up with the rent too.

If you apply for a new job, particularly a position in the financial sector, it is common company policy for your potential employer to run a credit check on you. A credit check is simply used as a way to judge your character beyond an interview or assessment centre. A good credit report may indicate trustworthiness and reliability to a potential employer. However, if a credit report reveals bad debt it may have a negative impact on whether you get the job.

To see what financial providers, landlords and potential employers see when they look into your application; get a copy of your credit report. To see it online, click here.