Credit Applications

This process often involves a comprehensive evaluation of the applicant's financial stability, credit history, and the purpose of the loan.

There are different types of credit applications for applicants who are already your existing customers and for those who are not your customers yet and are in process of applying to become your customers.

For the existing customers ExistingCustomerCreditApplication should be created, once created it will automatically be moved to Pending status.

For the new customers the OnboardingCustomerCreditApplication should be used, once created it will stay in the Created status until the application for the banking services will be approved, denied or canceled.

Credit Application Types

Unit supports two types of credit applications:

Type	Description	Use Case
ExistingCustomerCreditApplication	Credit application for customers who already exist in your system	When an existing customer wants to apply for credit
OnboardingCustomerCreditApplication	Credit application for new customers who are in the process of onboarding	When a new customer applies for credit during the onboarding process

Credit Application Statuses

The final statuses for the credit application are Approved, Denied or Canceled. Once an application is approved, a Customer resource will be created and associated with the application resource. The new created customer resources will be referenced in the relationships object.

During the application evaluation it can stay in the Pending status as long as the evaluation process is running. Once the process is complete, the status will change to either Approved, Denied and the relevant webhook event will be fired (see Pending status description below)

There is an option to Cancel Credit Application at any point before it is Approved or Denied. The status of the application will change to Canceled, and the relevant webhook event will be fired. Also if the banking application got canceled or archived the corresponding credit application will be moved to Canceled status.

Below are all application statuses and their descriptions:

Status	Description
Created	The application was created. Waiting for the original application evaluation.
Pending	The application is being evaluated.
ManualReview	The application is being manually evaluated. This is functionally equivalent to the Pending status.
Approved	The application was approved and updated with the approved credit limit.
Denied	The application was denied and updated with the deny reason.
Canceled	The application was сanceled.

Status Flow

Created → Pending → ManualReview → Approved
                  ↘             ↗
                    → Denied
                  ↘
                    → Canceled

• OnboardingCustomerCreditApplication: Starts in Created status and moves to Pending once the banking application is approved
• ExistingCustomerCreditApplication: Automatically starts in Pending status

Related Resources

• Credit Accounts - Accounts created after credit application approval
• Lending Programs - Programs that credit applications are associated with
• Applications - Banking applications that onboarding credit applications relate to