loader image
Real Estate Glossary

Equal Credit Opportunity Act

inflation calculator
Avatar
Written by Luis Escobar

This is a federal law forbidding lenders from utilizing a consumer’s color, race, national origin, religion, marital status, or gender as a factor for loan approval. It requires fairness and impartiality on the part of the lender so that consumers have the equal opportunity to apply for loans, mortgages, and credit cards. Lenders, however, are free to look at relevant financial information such as credit score, debt load, and income when making a decision about a loan.

This is a federal law forbidding lenders from utilizing a consumer’s color, race, national origin, religion, marital status, or gender as a factor for loan approval. It requires fairness and impartiality on the part of the lender so that consumers have the equal opportunity to apply for loans, mortgages, and credit cards. Lenders, however, are free to look at relevant financial information such as credit score, debt load, and income when making a decision about a loan.

About the author

Avatar

Luis Escobar

Leave a Comment