What is a common requirement for applying for credit?

A social security number is commonly required when applying for credit because it serves as a unique identifier for individuals within the credit reporting system. Lenders and financial institutions use the social security number to access an applicant's credit history, assess their creditworthiness, and determine their eligibility for loans or credit cards. This number is crucial as it helps prevent identity theft and ensures that the credit record being accessed corresponds to the correct individual.

In contrast, while a credit limit refers to the maximum amount a lender is willing to extend to a borrower, it is not a requirement for applying; rather, it is determined after the application process. A loan application fee may be charged by some lenders, but it is not universally required and varies based on the lender's policies. Health insurance policy is unrelated to credit applications and does not play a role in the credit approval process.