credit-application

Vocabulary Word

Definition

A 'credit application' is a document that you submit when you want to borrow money. It could be from a bank for a loan or from a company for a credit card. This document helps the lender decide if you're a good candidate for the loan.

Examples in Different Contexts

For mortgages, the credit application is the first step in obtaining a loan to purchase real estate. A mortgage broker might state, 'A complete and accurate credit application can significantly speed up the loan approval process.'

Practice Scenarios

Entrepreneurship

Scenario:

Our business is growing rapidly, and we need more capital to hire additional staff and increase production capacity.

Response:

We should consider submitting a credit application to obtain the needed funds for expansion.

Business

Scenario:

We are considering expanding our retail operations to another location. However, that'll require a significant initial investment.

Response:

That sounds like a major expansion. Have we started the credit application for this investment?