Lenders do credit checks to understand your financial behaviour and assess your history of handling your finances. They will be assessing your ‘creditworthiness’, or your suitability to receive financial credit. This is often based on how reliable you have been at paying back money in the past. Lenders have an obligation to lend money responsibly. It can be frustrating knowing that your finances and credit profile will be scrutinized but this ensures that you are not lent more money than you can afford (called ‘affordability’), and that the finance product you are sold is suitable for your circumstances. Whilst there are some payday lenders who will offer finance without a credit check, you will be charged enormous rates of interest to accommodate the increased risk of lending. This can be unaffordable for larger loans, such as buying a car. By having a credit check done, this ensures you are offered the correct rate of interest for your circumstances, rather than over-paying.