When applying for credit accounts or loans, consumers need to know their rights. Banks, department stores, credit card issuers, and finance companies are among the businesses that extend credit to customers.
Creditors use various standards in deciding whether to approve a credit or loan application.
These factors may include the applicant s ability to pay the debt, credit history, assets, and the number of years at a current job or residence. The law, however, does not guarantee a person will receive credit. The applicant must still meet the creditor s standards. Although creditors cannot use the above factors solely to extend or deny credit, those facts may have relevance in credit decisions. For example, if an applicant is nearing retirement age, the creditor may consider the person s future income levels and ability to repay a loan.