Credit application

A credit application is a type of application that is used to request or obtain a line of credit.

Normally when applying for a line of credit, credit card or loan, you start with completing a credit application. Most applications for credit require similar information from the applicant:
Legal Name; this is not the name your friends call you by, but your the name on your legal documents.
Address; creditors normally want to know how long you have lived at your current address and previous addresses. This serves several purposes, they want to know your stability and also want to be able to find you in case you default on payments.
Contact information and nearest relative; Creditors want to be able to locate you in case of default.
Social Security number; so they can check your credit report, as this is a large consideration is whether to grant the line of credit or deny it.

Some creditors might require additional information, depending on the type or credit your are requesting. For example if you were applying for a home equity line of credit, the lender would require information on the collateral, and it's value.

Most parents cosign for their kids on their first credit application. This can help those with no credit reference or poor credit to obtain a line of credit. But there are dangers with consigning for a loan.


 

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