A quick look at your borrowing history so lenders can make fair decisions
When you apply for credit whether it’s a loan, credit card, or even a phone contract, the company will often run a credit check. It’s their way of seeing how you’ve handled money in the past, to help them decide whether to lend to you now.
At Northern Community Bank, we believe in being open and honest about the process, so you feel confident in your financial choices.
What Exactly Is a Credit Check?
A credit check is when a lender looks at your credit report, which is held by a credit reference agency. It includes things like:
- Past and present borrowing (loans, credit cards, overdrafts)
- Payment history – have you paid on time?
- Public records (like County Court Judgements or bankruptcies)
- Your current address and whether you’re on the electoral roll
- Any financial links to other people (like a joint account or loan)
It helps the lender understand how likely you are to repay what you borrow.
Will It Affect My Credit Score?
There are two types of checks:
Soft Credit Check
This is a quick look, often done when you get a quote or check your eligibility. It won’t affect your credit score, and no one else can see it.
Hard Credit Check
This is a full check, usually done when you apply for credit. It does show up on your credit file and might affect your score slightly especially if lots of checks happen in a short time.
At Northern Community Bank, we’ll always explain which type of check we’re doing and why so there are no surprises.
Why Does It Matter?
A credit check helps lenders:
- Decide whether to offer you credit
- Set your interest rate and terms
- Make sure the loan is affordable for you
And it helps protect you too by making sure you’re not taking on more than you can comfortably manage.
What If I Have a Low Credit Score?
Don’t panic. A low score doesn’t mean you’ll always be turned down. It just means lenders might look a little more closely at your situation.
At Northern Community Bank, we look at the full picture, not just your credit score. We consider your income, spending, and circumstances, because we know life isn’t always black and white.
If you’re worried about your credit history, talk to us. We may still be able to help, and we’ll always treat you with dignity and understanding.
How Can I Check My Own Credit Report?
You can check your credit report for free with the UK’s main credit reference agencies:
Checking your report regularly can help you spot errors, understand what’s affecting your score, and make positive changes.
You’re More Than Just a Number
At Northern Community Bank, we believe in fair, affordable lending that works for real people. Credit checks are part of the picture, but they’re not the whole story.
You can always talk money with us.
