8. Opening an account Obtaining credit begins with you. After you complete a credit application, the lender decides if you are a good risk. Agencies that collect credit information about individuals are called credit bureaus. For a fee, they provide information about you that lenders need to decide if you are a good risk. The information you provide on your application is checked against the information the credit bureaus have collected about you. Your Credit Application: Why is it Approved or Denied? LAPPROVED Good news-your credit application was approved. What are the major factors about you that the lender used to evaluate your creditworthiness? Check all that apply. Condition Physical appearance Capacity College transcript Political affiliation Character Your friend recently applied for credit and was turned down. Why was your friend probably denied credit? Check all that apply. History of personal bankruptcy Debt safety ratio greater than 20% Large amount of available credit relative to income Application error--for instance transposed figure in street address (for example, 124 Main St. instead of 142 Main St.); all other information is accurate False or misleading information on your application Inaccurate credit report that reflects a poor credit history FICO score less than 350