Why Current Creditors Check Your Credit - The Credit Pros

Creditors, especially credit card issuers, periodically check your credit report to monitor your financial health and adjust credit terms if necessary. Installment loans, like mortgages and auto loans, are usually checked once, while revolving accounts, like credit cards, are checked regularly due to ongoing lending. Lenders assess risk to decide on credit limits and interest rates, and may change terms or close accounts if your credit score drops significantly.