The Equal Credit Opportunity Act
The Equal Credit Opportunity Act was passed in 1974 by the Federal Trade Commission.
This act states that all consumers have an equal chance at applying for credit.
Not all consumers will be approved for credit lines since approval is determined based on: income, credit history, debt, expenses, and credit scores. The purpose of the Act is to prohibit discrimination, so all people can apply for lines of credit regardless of: Race, Color, Religion, National Origin, Sex, Marital Status and Age.
When a consumer is rejected for a line of credit the creditor must explain why. Being rejected for not having a credit file, or a low credit score or delinquent accounts are reasonable explanations for denying a consumer a credit. Creditors are allowed to deny consumers credit lines based on their credit report and income situation. Keep in mind a credit report does list your last name which can indicate a race but for the most part your credit report shows your age and your marital status only. Credit reports do not list your race or color or religion or sex.
What personal information is on your credit report?
· Name
· Birth date
· Marital status
· Social Security Number
· Previous Jobs
· Previous Addresses
· Current Jobs
· Current Address
If you feel you have been denied credit based through discrimination, you need to contact a credit reporting agency and file a complaint!
- Understanding Credit:
