What is allowed by the creditor when you apply for credit?

What is allowed by the creditor when you apply for credit?

When You Apply For Credit, Creditors May Not… Discourage you from applying or reject your application because of your race, color, religion, national origin, sex, marital status, age, or because you receive public assistance. A creditor may use only the terms: married, unmarried, or separated.

Can creditors access my credit report?

Creditors. Current or potential creditors — like credit card issuers, auto lenders and mortgage lenders — can pull your credit score and report to determine creditworthiness as well.

Who can access your credit report without your authorization?

The Fair Credit Reporting Act (FCRA) has a strict limit on who can check your credit and under what circumstance. The law regulates credit reporting and ensures that only business entities with a specific, legitimate purpose, and not members of the general public, can check your credit without written permission.

What are 2 credit laws?

Legal Protections Although you’ll probably never memorize all of the protections you’re entitled to concerning your credit, you can familiarize yourself with your rights under two of the most important federal consumer protection laws — the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.

Why is equal credit opportunity so important?

The act’s purpose is to prevent lenders from using race, color, sex, religion, or other non-creditworthiness factors when evaluating a loan application, establishing terms of a loan, or any other aspect of a credit transaction.

How long do you have to keep credit applications?

25 months
The Equal Credit Opportunity Act (ECOA) requires you to keep a copy of a credit application for 25 months after notifying a consumer about the action to take on the application. The Fair Credit Reporting Act (FCRA) does not impose a specific record-retention requirement related to adverse action notices.