50+ Sample Credit Application Forms

What is a Credit Application Form?

A credit application form is a standardized form used when a customer requests to use credit. A credit application form in writing is submitted either electronically or physically. The credit application form needs to be filled for the lender to assess the suitability of the request. It is important to remember that lenders look over the information in the application form and evaluates whether or not to allow credit usage. 

According to the data collected by Statista, 38% of sales made in America last year were credit card transactions. Based on the statistics shown, it is evident that customers purchase products or services through credit.

What Information is on a Credit Application Form?

Filling out the application form completely and accurately will give you an advantage over leaving out information. Lenders require the following to ensure a smooth transaction, and it is best to keep these in mind.

Contact details. Contact details need to include the applicant’s name, phone and mobile numbers, email address, and home address. For business applications, it must contain the names, mobile and phone numbers, addresses, and email addresses of the company officers.Financial details. Financial details will give the lender an idea of the borrower’s payment ability. The information in this section includes bank details, accountant’s name, and credit check agreement. When it comes to business transactions, the applicant should provide different lender client details.Business information. Business applications need to provide information about their business. Business information includes the business name, address, form of business, and date of establishment.

Steps in Applying for Credit

For business owners, it is necessary to separate business and personal credit. It shows that your account is different from the record of your business. It allows a clean slate for credit rating on the part of your business. Look at the steps below in applying for credit tied to your business.

Step 1. Incorporate the Business

Remember that you are not your business. The distinction of your business as a legal entity separates it from you. It can be through an LLC (Limited Liability Company) or a corporation. After doing this, make sure to register your business with the appropriate business structure.

Step 2. Obtain a Federal Tax ID Number (EIN)

The EIN is a nine-digit number given to a registered business entity, similar to a social security number. EIN is used to file federal income tax, open a business bank account, apply for licenses, permits, and business credit.

Step 3. Open a Bank Account for the Business

It is a necessary step in classifying personal and company identity and expenses. Remember to use the business account strictly for business transactions. The bank account will serve as a reference for lenders to review spending and credit data for application purposes.

Step 4. Secure a Credit Line with Retailers or Suppliers

Purchasing items from retailers or suppliers affect the company’s credit. It is significant to ensure the retailers and suppliers are reporting their transactions with you to a credit reporting agency. The reports sent to the agency serve as evidence for future applications.

Step 5. Monitor Spending Credit and Pay Bills on Time

Through established business reports, credit reporting agencies analyze information that can help in future credit approvals, even repayment terms, and credit lines.


Qualifications to apply for business credit

A study made by the Harvard Business School shows that a single bank declined 45% of credit applications from small businesses. Qualifications for application vary from one bank to another. The organization model, applicant qualifications, and business industry are some examples that you might encounter when applying for credit. It is important to research what you’ll need for the application process before visiting a lending institution.

Can your credit affect your business credit?

Remember, you and your company are supposed to be two separate entities. In situations wherein a lender sees a discrepancy in your credit rating, it will not affect the business credit. It also allows owners of businesses to have protection over their assets.

What happens if you don’t pay credit debt?

According to Statista, corporate debt globally reached $72 trillion in the first months of 2019. Having unpaid credit can lead to consequences for your business. The lender can opt to lower your credit limit. The credit report sent to credit reporting agencies can affect your business credit rating along with your customer’s credit rating. In a worst-case scenario, credit can be cut off and have legal implications on your business. Business owners should always keep track of their spending credit and make sure to appropriate money to lower the risk of debt.

As Dave Thomas once said, “What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed.” Starting your own business is requires a lot of courage and determination, along with the responsibility to ensure that your customers get their money’s due. A credit line for your business will help it to grow and thrive as long as you manage the company’s credit wisely. Any business can thrive when you can handle situations, either by yourself or consulting other people. Check out the credit application forms above and start growing your business!