What exactly does a credit application do?

Question

my friends want me to move in with them, and they found an apartmen they like, they want us to go and fill out credit applications and im a little weary at what im doing, i dont wanna sign a contract or anything if thats what it is?

Answer 1

You are applying for credit.  When you buy something on credit-like having a credit card, a loan for a car, or loan for a house you are developing a credit history.  Your history shows how much you borrowed, if you paid it off, if you made payments on time, etc.  This is your credit history.   People who extend credit to you want to know your credit history to see if you are a good credit risk.  Who ever signs the lease for the apt will be liable for monthly payments as stipulated in the lease agreement.  Can you afford the monthly payments?  What if someone moves out before the lease is up?