The Equal Credit Opportunity Act requires that all credit applicants be considered on the basis of their actual qualifications for credit and not be rejected because of certain personal characteristics. What Creditors Look For The Three Cs. Creditors look for an ability to repay debt and a willingness to do so and sometimes for a little extra security to protect their loans. Creditors want to know what you may have that could be used to back up or secure your loan and other resources you have for repaying debt other than income, such as savings, investments, or property. Creditors use different combinations of these facts to reach their decisions.
Creditors also use different rating systems.
Some rely strictly on their own instinct and experience. Others use a credit-scoring or statistical system to predict whether you re a good credit risk. They assign a certain number of points to each of the various characteristics that have proved to be reliable signs that a borrower will repay. Then they rate you on this scale. Different creditors may reach different conclusions based on the same set of facts.