Is a credit check bad?

No. A credit check is often a necessary step in obtaining a loan. Lenders use the information in your credit report to determine your creditworthiness. Without a credit check, it’s next to impossible for them to assess the risk of doing business with you, which means they’ll be more likely to deny your application. However, too many hard credits checks performed in a brief period isn't ideal as each negatively impacts your credit score. Also, the presence of numerous hard inquiries may signal to lenders that you’re applying for many credit products at once, which usually isn’t a good sign.

Why is a credit check important?

A credit check provides insightful financial details that lenders require to assess your eligibility for a loan product. Without one, they miss crucial information required to gauge the risk associated with extending credit to you, which increases the chance of them rejecting your application.