An application fee is a charge levied by a lender to a potential borrower for the time and effort required to accept and begin processing a loan application. This fee often covers the cost of an appraisal and a credit report.
Credit history refers to an individual's past behavior involving the taking out and repayment of loans and the use of revolving credit, such as credit cards. Credit histories are recorded by national credit reporting companies who issue credit reports. These reports are used by lenders to assess an applicant’s creditworthiness.
A Credit Rating (Report) is an evaluation of an individual's or business's capacity and history of debt repayment. It provides creditors with an understanding of a borrower's reliability, aiding in the decision-making process for loans and credit.
A credit score is a numerical expression that represents the creditworthiness of an individual, predicting the likelihood that the individual will default on a loan based on their credit history.
A loan application fee is a non-refundable charge required by a loan originator to cover the credit report, property appraisal, and other incidental expenses associated with underwriting a loan.
