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The Equal Credit Opportunity Act calls on all lenders to apply the same standards to estimate credit worth for all applicants, without bias towards race, sex, marital status, national origin, religion, age, or public assistance program involvement. This does not guarantee the approval of a loan or credit but does insure that all consumers are given an equal chance to obtain credit. The only acceptable factor to be used by creditors is the ability to pay back debts. Questions on sex, race, or nationality are optional.
You are not required to answer such questions on an application for credit.
Questions on marital status are optional. You may be asked your age under the Equal Credit Opportunity Act, but only to determine if you are above 18 years of age.

Creditors must inform applicants of their decision of credit approval or rejection within 30 days.

In case of credit rejection, the creditor must provide a written statement with the reason for rejection of credit.

The Fair Credit Reporting Act has given individuals the right to view credit report with each citizen can receive one free credit report every 12 months. The act allows individuals to receive their credit history for all three national credit reporting agencies.

The act was made to facilitate accuracy and privacy of an individual’s information in credit reports. It had provisions for curbing & misusing identity theft. By reviewing one’s credit report each year, one can determine if any sort of identity theft had occurred.
Learning how credit reporting works will help maintaining good credit score . By understanding these laws, you are taking a positive step in maintaining good credit score and improve your credit approval chances

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