How does a credit check work?

How does a credit check work?

The lender will use an approved credit reference agency to make a search on your name and address, and any previous addresses, which you give in your personal loan application.

This credit check involves calculating your credit rating, which shows how risky it will be to give you a personal loan.

Each time a credit check search is requested by a lender, it will be noted on your credit rating by the credit reference agency and detailed in any future credit checks.

If you have had no previous credit issues, a credit check should be very straightforward and you should be eligible for the majority of personal loans.