Can a creditor cut off, or not approve, credit because an individual is a certain age?
In the past, many older persons have complained about being denied credit because they were over a certain age. Or when they retired, they often found their credit suddenly cut off or reduced. So the law is very specific about how a person’s age may be used in credit decisions. A creditor may ask your age, but if you’re old enough to sign a binding contract (usually 18 or 21 years old depending on state law), a creditor may not: • Turn you down, offer you less credit, or offer you less favorable credit terms because of your age • Ignore your retirement income in evaluating your application • Close your credit account or require you to reapply for it because you reach a certain age or retire • Deny you credit or close your account because credit life insurance or other credit-related insurance isn’t available to a person your age Creditors may “score” your age in a credit-scoring system, but if you’re 62 or older you must be given at least as many points for age as any person under 62.
