Final answer:
Applicants should redact personal, financial, and medical information not required by the lender, inquire about how their data will be used, and monitor their credit history for security.
Step-by-step explanation:
When submitting an application to a lender, it's vital to respect confidentiality requirements by only including the minimum information necessary and redacting sensitive details. This means personal, financial, and medical information that is not directly required by the lender should be kept private to protect the applicant's identity. It is also important to inquire why certain information is being requested, how it will be used, and who will have access to it. Additionally, keeping track of your credit history for any red flags is essential to ensure your identity has not been compromised. The aim is to strike a balance between providing enough information to reassure the lender of the borrower's creditworthiness, while protecting sensitive data from misuse or discrimination.