Word: Credit Application
Definition: A "credit application" is a formal request made by a person or a business to borrow money or obtain a line of credit from a bank or financial institution. It usually includes personal information, financial details, and the amount of credit they want.
Usage Instructions: - You typically fill out a credit application when you want to get a loan, a credit card, or a mortgage (like a loan to buy a house). - This application helps the lender understand your financial situation to decide if they should give you the money.
Example: - "Before buying the car, I had to submit a credit application to the bank."
Advanced Usage: - In a business context, a credit application may involve more detailed financial statements and projections, especially for larger loans. - Businesses might submit multiple credit applications to different lenders to compare offers.
Word Variants: - Credit (noun): The ability to borrow money. - Application (noun): A formal request for something. - Apply (verb): The action of making a request for something.
Different Meanings: - "Credit" can also refer to recognition for a job well done or the amount of money available to be borrowed. - "Application" can mean the act of applying something, like applying paint or a theory.
Synonyms: - Loan request - Credit request - Borrowing application
Idioms and Phrasal Verbs: - "Get a line of credit": This means to be approved for borrowing money through a credit application. - "Put in an application": This phrase means to formally request something, such as a credit application.
Summary: A credit application is an important document used when someone wants to borrow money. It is necessary to provide information about your finances so that the lender can make a decision.