How Do Lenders Check Your Credit Report? - The Teen Economist

Описание: How Do Lenders Check Your Credit Report? Have you ever wondered how lenders decide whether to approve your credit application? In this video, we'll explain the process behind how your credit report is checked and used by lenders. We’ll start by defining what a credit report is and what kind of information it contains. You’ll learn about the three main credit bureaus—Experian, Equifax, and TransUnion—and how they collect data from banks and lenders. We’ll discuss what details are included in your report, such as your payment history, debt levels, and recent credit activity.

You’ll also discover what a credit score is, how it’s calculated, and why it’s important for your financial future. We’ll explain the difference between hard inquiries, which happen when applying for new credit and can temporarily lower your score, and soft inquiries, which are used for monitoring or pre-approvals and do not affect your score. Additionally, we’ll cover how lenders review your report to make decisions about loan approvals and interest rates, especially for big purchases like homes.

Understanding this process helps you see how your financial habits impact your chances of getting approved and securing better loan terms. Whether you’re planning to apply for a credit card or a loan, knowing how your credit report is checked will give you a better idea of what lenders see.

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About Us: Welcome to The Teen Economist, a channel designed to help teens grasp essential economic concepts. Here, we discuss the basics of supply and demand, inflation, budgeting, and saving money. Our content covers how banks operate, understanding credit and interest, making smart spending choices, entrepreneurship, and investing for beginners. Whether you're curious about jobs and the economy or various economic systems, you’ll find practical insights to boost your financial literacy and decision-making skills.