Equal Credit Opportunity Act: Now there is a Fair share of Cake for All

Equal Credit Opportunity Act or ECOA, though a federal law is like a boon from heaven for thousands of deprived citizens across the United States. It is has opened the floodgates of opportunity for consumers from all spheres of the society in matters related to credit and finance. This federal law equips the general mass to enjoy an equal chance with credits and loans. They can now dream of opting for higher education, renovating their homes, buying a new car or setting up small businesses.

Discrimination to approve credit towards women and other minor communities was an incident that occurred in the very recent past. In the modern era women are considered equal to men in all walks of life. But they were the prime victims who suffered most due to discrimination. Despite the fact that they were entering the workforce in record numbers, single women were often required to get a cosigner or denied credit altogether. Members of minority groups were denied credit as well, even though they were fully qualified.

The Equal Credit Opportunity Act, which was passed by Congress in 1973, first banned discrimination in credit access on the basis of sex or marital status. Further amendment was made to include race, religion, national origin and age. Of course, this doesn’t mean all consumers are eligible for a credit. The key factors that effect your credit worthiness is your income, expenses, debt and credit history.

Now you are shielded from harassing Creditors, while applying for Credit.

•The creditor may not discourage you from applying for credit on the basis of your sex, marital status, age, race, national origin, or because you receive public assistance income.

•You cannot be compelled to reveal your sex, race, national origin, or religion. A creditor may ask you to voluntarily disclose this information, except for religion if you’re applying for a real estate loan. This information helps federal agencies enforce anti discrimination laws. You may be asked about your residence or immigration status.

•The creditor may not ask if you’re widowed or divorced. If permitted to ask about your marital status, a creditor may only use the legal terms like married, unmarried, or separated.

•The creditor may not enquire about your marital status if you’re applying for a separate, unsecured account. A creditor may ask you to provide this information if you live in community property states of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington. A creditor in any state may ask for this information if you apply for a joint credit account or one secured by property.

•The creditor may not request information about your spouse, except when your spouse is applying for credit with you.

•They are also prohibited from enquiring about your plans for having children or about the ways you decide to raise your child.

•This federal law also restricts the creditor to ask if you receive alimony, child support, or separate maintenance payments, unless you’re intimidated about this from the very outset. The creditor might ask you these questions only if you have applied for credit based on the above mentioned payments.

Women Folks Tighten up your Belt

With the introduction of Equal Credit Opportunity Act there are enough reasons for the women to jubilate. At the same time there are certain issues you need to be very cautious about. You need to maintain a good credit history to obtain a good credit. A record of how promptly you made your last payments is sometimes very necessary. Unfortunately, if you are married, separated or divorced this might hurt your credit records. This is one major reason why women undergo problems when they apply for a credit.

However, if you are going through any such similar problems, you may contact some of the most popular credit bureaus like Experian, Equifax and Transunion to make sure all relevant information is in a file under your own name.

It is true that the Equal Credit Opportunity Act has revolutionized the concept of credit application. It is now within your reach to maintain a good credit report and be eligible for credit which you truly deserved. With ECOA there are enough reasons for brighter and stronger financial support ahead.

For other relevant articles please view:

http://www.debtconsolidationcare.com/fdcpa.html
http://www.debtconsolidationcare.com/fcra.html