Credit investigation is an activity of collecting, sorting, saving and processing the credit information of natural persons, legal persons and other organizations according to law, providing credit reports, credit evaluation, credit information consultation and other services to help customers judge and control credit risks and conduct credit management.

Credit investigation is an activity that a professional and independent third-party organization establishes credit files for individuals or enterprises, collects and objectively records their credit information according to law, and provides credit information services to the outside world according to law. It provides a platform for professional credit reporting agencies to enjoy credit reporting.

Credit refers to the funds directly provided by commercial banks to customers of non-financial institutions, or the guarantee of compensation and payment responsibilities that may occur to customers in related economic activities.

Including loans, trade financing, bill financing, financial leasing, overdraft, advances and other off-balance-sheet businesses, as well as off-balance-sheet businesses such as bill acceptance, letter of credit, letter of guarantee, standby letter of credit, letter of credit confirmation, bond issuance guarantee, loan guarantee, asset sale with recourse and unused irrevocable loan commitment.

Simply put, credit extension refers to the behavior that banks directly provide financial support to customers or guarantee customers' credit in related economic activities to third parties.

Extended data:

Credit investigation plays an important and fundamental role in promoting the development of credit economy and the construction of social credit system.

The first is to guard against credit risk. Credit information reduces the information asymmetry of all parties to the transaction and avoids the transaction risk brought by information asymmetry, thus playing the role of risk judgment and disclosure;

The second is to expand credit transactions. Credit investigation solves the bottleneck problem that restricts credit transaction, promotes the achievement of credit transaction, promotes the innovation of financial credit products and commercial credit products, effectively expands the scope and mode of credit transaction, and drives the expansion of credit economy scale;

The third is to improve the efficiency of economic operation. Through specialized credit information services, the cost of information collection in transactions can be reduced, the transaction time can be shortened, the transaction space can be broadened, the operating efficiency of economic entities can be improved, and economic and social development can be promoted;

The fourth is to promote the construction of social credit system. Credit information industry is an important part of social credit system construction. The development of credit information industry is helpful to curb the occurrence of bad credit behavior, protect the interests of trustworthy people, maintain a good economic and social order, and promote the continuous development and improvement of social credit system.

References:

Baidu Encyclopedia-Zheng Xin

Baidu encyclopedia-credit granting