What are the Best Tips for Filling out a Line of Credit Application?

The best tips for filling out a line of credit application are to honestly provide the information that is asked for, and to include any additional information that may be relevant. Ask any questions while filling out the application if the lender is there, or place phone calls to clear up any confusing information before submitting it. Do not skip any sections; if there is a question on the line of credit application, answer it, no matter how trivial it may seem. The lender has a reason for asking these questions, and skipping them or providing false information will get your application denied and in some cases can constitute fraud.

A line of credit application is typically fairly basic. It will require the borrower to provide information such as name, social security number, address and telephone number, and employment status. The borrower will generally need to state whether he or she rents or owns her home, how long she has lived at that address, as well as the amount of the monthly rent or mortgage, so the lending company can determine what percentage of monthly income goes to housing costs. Ideally, it should be around 25 percent of one's monthly income, though depending on the rest of the application and one's credit history, the lender might make exceptions.

In addition to filling out this information on a line of credit application, the potential borrower will be asked to provide information regarding existing debt and financial obligations. Again, it is important to be honest; though it may be tempting to leave something off, the lender is going to check one's credit report anyway, where it will become clear that the debt exists, as well as that the applicant lied on the credit application. It is best to take the credit application home and fill it out if unsure of any of the information that is being requested, even though in some instances the lender will attempt to get it filled out immediately, such as when purchasing a vehicle.

Remember to sign and date the line of credit application and check it over carefully for any errors. Some lenders will immediately share the results of the credit application, but in more complicated cases it may take a few days or a week to receive an answer. Feel free to call the lender to check the status of the line of credit application unless instructed otherwise.