How Long Does A Credit Check Take
How long does a credit check take?
To know how long a credit check does take we must understand the basic facts about a credit check. Credit check is defined as a check that is done before a transaction is made which ensures the leverage positions of the two parties that are involved, and that they possess the means required for the trade, are enough. A credit check is done to provide assurance to one party about the solvency of the other party that is involved in the transaction. It is an act to maintain confidence before the transactions are made that each respective party that is involved in the transaction has appropriate credit to carry on the transaction.
How long does a credit check take, depends on the kind of inquiry that is made. Basically there are two types of inquiries known as the ‘Soft’ and the ‘Hard’ inquiries. In the case of hard inquiry it is a report recorded on credit report of a person while a third party observes the credit report as a result of credit application. On the other hand, a soft inquiry is made by an individual to check the credit report of the self for any kind of errors.
Concerning how long does a credit check take the report of the credit remains for two years in case of hard inquiries. The drawbacks of having too many hard inquiries on the credit of an individual is interpreted as that the individual is expanding the amount of credit that is
available to a great extent. This may also imply that the individual is trying to expand the amount of outstanding debts which is thought to raise a suspicion that the debtor is unlikely to pay the debt. When adverse figures appear on the credit report, there is barely anything that can be done to straighten it up if the statistics are candid and exact.
So how long does a credit check take? If done online from a specific website that specializes in making the credit check then it may take a few minutes. And for doing manual credit check it may take anywhere from 3 to 10 days. A credit score is generated through this check which is basically a numerical value as per the analysis done on the credit files which represents the solvency of the individual. This score is something which is resultant of the information derived from the bureaus of credit as long does a credit check take. In order to decrease the credit risk of the creditor, the creditor may well execute a credit check on the probable debtor, possibly will necessitate the debtor to yield out suitable coverage, such as mortgage insurance or pursue security.
Regarding how long does a credit check take depends on the things that are included in this credit check are: Personal details like address, Employment history, social security number etc. History of the credit report, details of the number of accounts of the person; the number of inquiries made on the credit report of the person etc.Source: www.howlongdoes.com