Consumer Car Buying Advice Blog

I was recently asked a question regarding marital status and car loans. It turns out that it doesn’t matter if you have a marriage certificate or not. That’s because there is a law that covers this…

The Equal Credit Opportunity Act

The Equal Credit Opportunity Act basically states that a creditor, such as a bank or credit union, can judge a customer only on their ability to repay a debt, not on other factors. A recent example of a bank not following the rules would be a settlement between the Justice Department and Compass Bank of Alabama. According to a Justice Department release:

“The government’s complaint alleges that Compass Bank violated the Equal Credit Opportunity Act (ECOA), which makes it unlawful for any creditor to discriminate against any applicant based on race, color, religion, national origin, sex, marital status or age by unlawfully charging higher interest rates to co-applicants for automobile loans who were not married to each other than to co-applicants who were married.”

What does the ECOA mean for bad credit loan applicants?

According to Assistant Attorney General Wan J. Kim, “Under the law, marital status should have no effect on an individual’s access to credit…” This means that a lender is not allowed to ask you if you are married or not when you individually apply for a loan. It also means that, if you apply for a loan as a couple, unless you live in a community property state (AZ, CA, ID, LA, NV, NM, TX or WA), the creditor, if permitted, can only ask if you are married, unmarried or divorced. In addition, the creditor cannot charge you a higher interest rate if you are not married.

The Bottom Line

Here at Auto Credit Express, we believe than an informed consumer is our best customer. If you have been concerned about this in the past and now feel that you might qualify for a bad credit car loan, go to our site at www.autocreditexpress.com. Here you will find online resources that will help you determine a budget for your car. You will also find guidelines regarding minimum income as well as other requirements that need to be met for a loan. In addition, you can fill out our secure application in the comfort and privacy of your own home. Here at Auto Credit Express, we want you “on the road” to better credit!

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