What is the credit check?
Before a bank pays a higher loan, it does a so-called credit check. This checks exactly what collateral the customer has so that the bank can assess whether it will get the money paid out within the agreed period. The bank serves as collateral, for example, earnings, the job and various valuables. There is a loan especially for civil servants with particularly low interest rates, since this secure job can be assumed that the money will be repaid in full. Having your own house or property can also serve as security. Other valuable items would be, for example, gold, jewelry or your own car.
The credit check mainly occurs at banks, as they first want to see what amount they can pay out to the borrower without risk. During such an examination, the bank also checks whether loans have already been taken out from other banks. In this case, the check can either result in loans being combined or the customer not receiving any credit at all. The check can also determine how high the credit can be in the end. For a fairly small loan with amounts between 500 and 2000 USD, less collateral is accepted, while for a high loan of more than 10,000 USD, even more collateral has to be provided.
False statements lead to credit withdrawal
When checking credit, it is important that the borrower actually fills in all the information correctly. Should he disclose untrue facts on only one thing, the bank can withdraw his credit and report the offense. However, the banks check very carefully whether the information provided is actually correct. To do this, they take a closer look at account statements and also make sure that previously taken out loans have been properly repaid. For valuables, the bank requires various documents, such as a title deed or other evidence that the borrower can use to prove his security to the bank.