A good credit score is very important. Companies look at your credit history when assessing your credit, insurance, employment, and even rental applications. You can use it if they decide to grant or deny you credit or insurance, provided you receive fair and equal treatment. Sometimes things happen that can cause credit problems: a temporary loss of income, illness, or even computer error. Solving credit problems can take time and patience, but it doesn`t have to be an ordeal. EcoA applies to all companies that lend regularly and to companies such as mortgage brokers that only organize financing. 3. Collection of information on behalf of creditors. Individuals such as credit intermediaries and correspondents do not violate ECOA or Regulation B by collecting information that they are otherwise prohibited from collecting if the purpose of collecting the information is to make it available to a creditor subject to the Residential Mortgage Disclosure Act or any other federal or state law or other federal or state regulation; which prescribes data collection. 2. Termination due to a credit limit. If a creditor terminates credit accounts with low credit limits (for example.
B less than $400) but maintains accounts opened with higher credit limits, termination is an adverse act and notice is required in accordance with § 1002.9. 4. Credit rating system. If a creditor bases the rejection or other adverse measures on a credit rating system, the reasons given may relate only to the factors actually assessed in the system. In addition, no factor that has been a major reason for adverse action can be excluded from disclosure. The creditor must disclose the actual reasons for the refusal (p.B. „age of the automobile“), although the relationship between this factor and the applicant`s credit prediction may not be clear. 1.
Signature of another person. It is inadmissible for a creditor to require an applicant who is individually solvent to provide a co-signer – even if the creditor applies the requirement regardless of gender, marital status or any other prohibited basis. (See, however, comment 7(d)(6)-1 on guarantors of closely owned companies.) 1. Credit to governments. The exception applies to loans made (not by) government agencies. For example, loans to a local government fall under this exception, but loans to consumers from a federal or state housing agency do not receive special treatment in this category. 2. Consideration of age in a credit scoring system. Age can be directly taken into account in a „manifestly and statistically sound“ credit scoring system, as defined in § 1002 (2) (p), with one restriction: applicants aged 62 or over must be treated at least as favourably as applicants under 62.
If age is reached by awarding points to a candidate`s age category, older applicants must receive the same number of points or a higher number of points than the most preferred category of non-elderly applicants. In addition, correspondence must contain statements that essentially describe your rights, including. The fact that the creditor assumes that the debt is valid unless you refuse it within 30 days of receiving the letter (although your non-response, if not an admission of liability). All credit repair companies must provide you with a disclosure detailing your right to obtain a credit report and challenge inaccurate information yourself. Similarly, they cannot protect you until 8 a.m. .m. or after 9 p..m.; If your employer doesn`t allow personal calls (and they have reason to know), they won`t be allowed to contact you at work, regardless of the time of day. i. Time cards distributed by age. Some credit systems segment the population and use different scorecards depending on the age of the applicant. In such a system, a card may cover a narrow age range (i.B applicants in their twenties or younger), which are assessed based on predictive attributes for that age group. A second card can cover all other candidates who are evaluated under attributes that are predictive for that broader class.
If a system uses a card that covers a broad age range that includes older applicants, the credit scoring system is not considered an age limit. Thus, the system does not raise the question of whether a negative factor or value is attributed to the age of older applicants. But when a system divides the population by age into multiple scorecards and includes older applicants in a smaller age group, the credit scoring system assesses age. To comply with the law and regulations in such a case, the creditor must ensure that the plan does not assign a negative factor or value to the age of older applicants as a class. 2. Consistent payments. In determining the likelihood of constant payments of child support, child benefits or separate support, a creditor may consider factors such as . B as if the payments were received under a written agreement or court order; the duration of receipt of payment; whether payments are regularly received by the applicant; the availability of courts or other procedures to force payment; and the creditworthiness of the payer, including the payer`s credit history if available to the creditor. C. A creditor who does not verify the reliability of all components of income must treat as reliable any component of protected income that is not assessed. The FCRA also monitors who can get your credit report and why. In general, someone can only get your credit report if they have a legitimate business reason to do so or if you request a report on their behalf.
Legitimate business reasons include creditors who apply for credit reports to potential borrowers, employers who hire new employees and deal with retirement matters, and insurers who conduct a credit check before a policy is issued. 2. Late payment or current default. The term of adverse action does not include the termination of an account by a creditor if the account holder is currently in default or in default with that account. However, notification under Article 1002(9) of the Regulation is in principle required if the creditor`s act is based on a delay or previous default of the account. 1. Qualifications of the other parties. When establishing guidelines on the eligibility of guarantors, co-signatories or other similar parties, a creditor may restrict the applicant`s choice for other parties, but must not discriminate on the basis of sex, marital status or any other prohibited basis.
For example, the creditor could require the additional party to live in the creditor`s market area. Your credit report can affect your purchasing power as well as your chances of getting a job, renting or buying an apartment or house, and getting insurance. .