Definition
An applicant refers to any individual or business entity that requests credit, is judged for creditworthiness and is legally expected to repay any related debt on the account.
Analysis
An applicant and co-applicant are equally liable for the debt. Credit granting decisions will include all applicants seeking credit on the account.
An applicant differs from an authorized user in the following aspects, as the applicant:
- Is legally liable for the debt
- Is evaluated for creditworthiness
- Retains primary control over the account
- May receive a corresponding item on their credit report
An applicant also differs from a cosigner, in that the cosigner bears the burden of creditworthiness and shares liablity to repay the debt.
