When you apply for a loan, fill out an application form that tells the lender a lot about you. Every fact about you gets points. It also lists all exceptions to these promises. It is very important to look carefully at restrictive covenants because, according to our recent study, a significant number of loan agreements are formulated in such a way that borrowers can move assets intended to serve as collateral out of the reach of lenders. Institutional credit agreements must be agreed and signed by all parties involved. In many cases, these loan agreements must also be filed and approved by the Securities and Exchange Commission (SEC). Credit reference agencies are companies that are allowed to collect and store information about credit and consumer financial behavior. .