Law prohibits discrimination against you in credit deals
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 you to reveal your sex, race, color, national origin, marital status, religion or if you are a recipient of public aid.
A creditor is also forbidden to discourage or prevent you from applying for credit, refusing you credit if you otherwise quality for it, 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 you will receive credit: you must still meet the grantor’s standards to qualify for the credit.
In addition you must be old enough to sign a contract, usually age 18 to 21, depending on state law (in Illinois, it is usually 18). However, the creditor may not refuse you credit because of your age, refuse to consider your retirement income in rating your credit application, cancel your credit account or require you to reapply because you are a certain age or have retired, or refuse you credit because you cannot get life insurance due to your age.
Creditors may take into consideration how long your income will continue before you reach 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.
© Illinois State Bar Association
If you have questions about the application of the law in a particular case, consult your lawyer. The law is constantly changing. Information on this site or any site to which we link does not constitute legal advice.