Credit discrimination

Credit discrimination occurs when individuals are treated unfairly when applying for loans, credit cards, or other financial services based on personal characteristics such as race, gender, age, or ethnicity, rather than their ability to repay. This means qualifying or denial decisions are influenced by biases or stereotypes, leading to unequal access to credit. Such discrimination can prevent qualified individuals from obtaining necessary financial resources, impacting their economic opportunities and financial stability. It is both unethical and illegal in many jurisdictions to discriminate against consumers based on protected characteristics during credit decisions.