What is a Credit Pull?

A Credit Pull refers specifically to the process where a financial institution or lender requests access to a consumer's credit report information. This action is crucial as it enables the lender to evaluate the creditworthiness of the applicant before making lending decisions. The information retrieved during a credit pull includes the applicant's credit history, outstanding debts, repayment patterns, and overall credit score.

This process plays an essential role in risk assessment for loans, as it helps lenders determine whether to extend credit and under what terms. Therefore, understanding that a Credit Pull is directly associated with acquiring credit report information is fundamental in retail banking and lending practices.