What is a credit application?

A credit application is a form or document that individuals or businesses fill out in order to apply for credit or a loan from a financial institution, such as a bank or credit union. The application typically collects information about the applicant's personal and financial background, including their income, employment history, assets, debts, and credit history.

Lenders use the information provided on a credit application to evaluate the creditworthiness of the applicant and determine whether or not to approve the loan. The lender will also use the information to determine the amount of credit that can be extended to the applicant and the terms of the loan, such as the interest rate and repayment period.

It is important for applicants to provide accurate and complete information on a credit application in order to increase their chances of being approved for credit. In some cases, lenders may also require the applicant to provide additional documentation, such as pay stubs, bank statements, or tax returns, to verify the information provided on the application.