Credit Investigation
Updated: 29 February 2024
What Does Credit Investigation Mean?
A credit investigation is a procedure undertaken by a financial institution to vet a potential client’s ability to pay back a loan. Failure to pass this procedure means disapproval of a loan.
Insuranceopedia Explains Credit Investigation
When a person applies for a loan from a bank or any other financial institution, they are asked to disclose details about their financial history. This can include their income, salary, and credit history. These details will be verified through a credit investigation, which might include verifying the applicant’s income with their employer.
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