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What Is a Credit Application? A credit application is a borrowers formal request to a lender for an extension of credit. Credit applications can be made either orally or in written form, as well as online. Credit Application: Definition, Questions, Your Legal Rights investopedia.com terms credit-application investopedia.com terms credit-application
A commercial credit application form is used by commercial and business credit bureaus to track and retrieve credit history and business information of commercial clients. Commercial Credit Application Form Template - Jotform jotform.com form-templates commercial jotform.com form-templates commercial
A credit application fulfils two main purposes: It provides the lender with enough details to determine the borrowers likeliness to repay the loan. It provides the borrower with details to determine the cost of credit, such as interest rates and fees.
The primary purpose of the credit application is to determine whether the applicants financial condition is stable enough to permit the creditor to risk an extension of credit.
Key Takeaways A credit application is a request for a loan or line of credit. The information included in a credit report helps the lender determine whether the borrower is a good candidate for a loan. You can usually fill out a credit application either online or in person.
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A Credit Application serves the following purposes: It is an information gathering tool. It is an assessment tool to determine amount and duration of credit. It is a collection tool. It is a legal document that binds the applicant to your terms and conditions.

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