I’ve applied for a loan and my lender wants to do a credit check. Is this normal?
Yes. Lenders are looking for stability in a borrower. That’s why the past two years of your credit history has the greatest impact on the decision to lend you money. Lenders are looking mainly for these two things:
1.You have the income to qualify for the loan. That is, the lender is confident that you are able to pay back what you borrow.
2.Proof that you can pay back what you owe. By doing a credit check, the lender will see that you have not made any late payments on previous loans credit cards, rent or mortgages.
By the way, never assume your credit history is “too bad” to get approved for a loan or mortgage. Most lenders are willing to work with you to resolve difficult financial issues. If you would like to check your own credit rating before applying for a loan, call 1-800-465-7166.