Credit Check

Credit reports are used by lenders to determine if a person has the means and willingness to repay loans. They collect data on how people have managed their past credit including lines of credit, total debt load, timeliness for payments made in relation with due dates etcetera. This is important because without this information lending institutions can't make an educated decision about whether or not they want to provide services such as new lines of credits and setting terms it's repayment schedules among other things like employment history which will also be reviewed during the application process.