Equal Credit Opportunity Act

Equal opportunity acts refers to an act that supports providing equal opportunities for all in obtaining credit. In other words, it is a federal law which requires the credit providers and lenders to make credit available to all without any restrictions. The act states that all the U.S citizens are provided equal chances for applying and obtaining credit. But it should not be interpreted from the act that whoever applies for the credit should get one. It is not against the procedures of the credit providers like analyzing a person's credit history, expenses, income, external debt etc. before extending the loan. All these things should be considered for determining the credit worthiness of a person.

However, lenders should not limit awarding of credit to particular sect, gender, age, race, group, nationality, marital status, religion or color etc. The major aim of this law is to make the credit available to all those who are in need. The law protects anyone dealing with creditors. It also requires anyone involved in granting credit to abide by the law.

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