This is a complementary post to the entry, “How Do I Fill Out a Credit Application?” I’ve listed below a summary of your rights when you apply for credit from a bank. I won’t cover all of them, but I will review some of the major regulations set forth by the Federal Trade Commission.
Of note, when I use the term “identity,” I mean your race, color, religion, national origin, sex, marital status, or ago. From hereon, whenever I use the word “identity,” I refer to the aforementioned list of protected-status rights.
When you apply for credit, lenders cannot discourage you from applying or reject your application based on your identity. Banks may ask you about your identify; but they do so only to help federal agencies enforce anti-discrimination laws.
Creditors may not impose different terms or conditions based on your identity.
Creditors may not consider the racial composition of the neighborhood where you want to buy.
Creditors may not assume women of childbearing age will stop working to raise children.
You have a right to get credit without a co-signer so long as you meet the creditor’s standards.
You have a right to know if your application was accepted or rejected within 30 days of filling a complete application.
You have a right to know why your application was rejected. The credit must in no uncertain terms explain why they refused your application, if you ask for it, within 60 days. Acceptable reasons include “your income was too low,” or “you haven’t been employed long enough.”
To learn more about the regulations which govern lending, including . . .
. . . when you apply for credit, creditors may not . . . ,
. . . when deciding to grant you credit or when setting the terms of credit, creditors may not . . . ,
. . . when evaluating your income, creditors may not . . . ,
. . . ; and, you also have the right to . . .
. . . on the consumer information page of the Federal Trade Commission’s website.
