Credit Card Offers, Financial Responsibility and The Law

While there may be an ideal customer out there that the credit card companies would love to snag with some great balance transfer credit card offers, most people are able to get some kind of credit that is suitable to their particular financial circumstances. The fact is that there are so many products in the realm of credit that there is a lot of choice for consumers and lenders alike.

There are some definite things that credit card companies use to evaluate you and everyone else as to what kinds of credit products they will offer them. There are also some very clear regulations in place that protect consumers from any kind of inappropriate actions in the financial marketplace.

What Credit Card Companies Want In A Customer

Credit card companies and banks look for some very specific attributes in an ideal candidate for their best credit card offers. These are:

• Ability to pay debt. This means several things. Firstly, you should have an income.  Secondly, your income should be enough to repay your debts. If you have a great income but are also weighed down by a huge debt load you will not be a good candidate for any new credit cards.
• Credit score. Your credit score tells banks and credit card companies how you have dealt with your finances and your debts in the past. If you have an excellent credit rating you are a good risk for their new products. A bad credit score will make you less attractive to lenders and financial institutions.
• Assets. If you have acquired assets that have value such as your home, vehicles, antiques or any other property than your attractiveness to credit card companies is high. If all your property is financed and you have not built up very much equity in it, you are much less attractive. This is because your property can often be used to secure credit or loans. Financial institutions and banks may offer you loans that use your property as collateral. If it is already financed, this is not possible unless you have been paying on it for quite some time and have reduced the debt considerably.  Second mortgages are a good example of an instance where assets are used to secure more than one loan.

What Credit Card Companies Are Not Allowed to Look For

There are several things that you are protected against when credit card companies, banks and lenders deal with you in the credit marketplace.

1. They cannot discourage you from applying for a loan or credit card based on your age, your race, gender, religion or national origin.
2. They cannot refuse to give you their loan or credit card if you qualify for it.
3. They cannot close your existing accounts, loans or credit cards based on your age, your race, gender, religion or national origin.
4. They cannot refuse to let you have a loan or credit card that you qualify for because you do not qualify for credit insurance on the loan or credit card.

The Equal Credit Opportunity Act ensures that the rights of all citizens in the matters of credit cards and loans are the same. 

What You Are Responsible For

Remember however, that your credit rating is something else entirely. If you have excellent credit or bad credit you only have yourself to answer to. Loans and credit card offers may exclude you because of bad credit or high debt. These are not issues of human rights. They are simply the result of your own personal financial management. You may not be a good money manager but that does not mean you are entitled to credit in spite of it.

Credit card companies that make credit card offers that say they have low rates of interest, rewards and other perks are still legally offers open only to those who actually qualify for them. Despite your age, gender, religion or national origin you will be turned down for on the credit card offer if you have bad credit.

Keep in mind:

• Your financial standing is your own personal responsibility
• Protect your credit rating by being careful with your credit and paying your bills on time
• It is against the law to be refused credit because of your age, gender, religion or national origin.
• It is NOT against the law to be refused credit because you have a bad credit rating, low income or high debt load