Credit Application


DEFINITION of 'Credit Application'

A request for an extension of credit, either orally or in written form. The request must follow the lender's extension request procedures in order to be valid. The application must legally contain all pertinent information relating to the cost of the credit, including the annual percentage yield (APY) and all associated fees. Regulation Z of the Federal Reserve governs the credit application process.

BREAKING DOWN 'Credit Application'

A valid credit application will provide the amount and type of credit requested, the applicant's credit score and report and the means of security for the loan. Regulation Z also protects consumers by providing rights to credit card users, such as giving borrowers written disclosure and providing guidelines for acceptable credit advertisements.

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  1. How is my credit score calculated?

    The credit score, commonly referred to as a FICO score, is a proprietary tool created by the Fair Isaac Corporation. This ... Read Full Answer >>
  2. Are credit cards and debit cards considered debt instruments?

    Consumer debt instruments allow people to borrow money at specific interest rates. In recent years, the credit industry has ... Read Full Answer >>
  3. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  4. Is Apple Pay safe and free?

    Apple Pay is a mobile payment system created by Apple to reducing the number of times shoppers and buyers have to pay for ... Read Full Answer >>
  5. Can you use your Walmart credit card at Sam's Club?

    Consumers can use their Walmart credit cards to shop at Sam's Club. However, they cannot use their Walmart credit cards when ... Read Full Answer >>
  6. Is it possible to get a free credit report from Equifax?

    It is possible to get a free credit report from Equifax, as well as the other two major credit bureaus, Experian and TransUnion. ... Read Full Answer >>

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