The Equal Credit Opportunity Act says that all lenders will apply the same
credit standards to all the consumers no matter what their race, sex,
marital status, national origin, religion, age, or public assistance
program that is involved. This does not say for sure that the loan
approved or credit will be given to you. It will give you an equal chance
to obtain credit. The only good measurement for creditors to use is your
ability to pay the debts that you owe.

Many of the applications will have questions about some of the above
things. However you are not required to answer them on an application for
credit. These may be asked because of the fair housing laws or affirmative
action laws but these are at your discretion. You should not be asked
about your material status, unless your partner will help you secure the
loan. You may be asked your age because of the Equal Credit Opportunity
Act (more…)

A credit repot score is the basis used by lenders to determine if your loan application will be approved or not. If your credit report score is above 700, there wont be any problems and your loan will be granted with low interest rates. If however you score below this figure, you will be charged a higher interest rate and in the most extreme cases, they will not approve your loan application.

But how do creditors come up with this figure? Basically, they do this by reviewing credit related information such as your payment history to find out if you have ever had any late payments or filed for bankruptcy. They will also check how much money you owe not only on your credit (more…)