Under the Equal Credit Opportunity Act, a consumer is ensured that he or she has an equal chance to obtain credit to finance a purchase of goods or services.

To be considered credit worthy, several factors must be taken into consideration including income and expenses. The creditor may not ask sex, race, color, national origin, marital status, religion, or public aid status.

A creditor is also forbidden to discourage or prevent anyone from applying for credit, refusing anyone credit who otherwise qualifies for it, or extending credit on different terms from those granted to someone else with similar risk (as determined by factors such as ability to repay, credit history, assets, etc.).

The Equal Credit Opportunity Act does not guarantee anybody will receive credit: the grantor’s standards to qualify for the credit must still be met.

In addition a person must be old enough to sign a contract, usually age 18, depending on state law. However, the creditor may not refuse credit because of age, refuse to consider retirement income in rating a credit application, cancel a credit account or require reapplication because a person reached a certain age or retired, or refuse credit because a person cannot get life insurance due to age.

Creditors may take into consideration how long a person’s income will continue before he or she reaches retirement age. If the borrower is requesting a loan with a lengthy payback schedule, the creditor may determine that he or she is not a good credit risk.

Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.