What does ECOA ensure?

• A. Automatic approval for all applicants
• B. Equal chance to obtain credit, with consideration of creditworthiness
• C. Discrimination in lending is allowed
• D. Lenders must approve all applicants

Answer: (B)

ECOA ensures that everyone has an equal opportunity to obtain credit and that decisions are based on creditworthiness rather than personal characteristics. Lenders must assess factors like income, debt, credit history, and ability to repay, not race, color, religion, national origin, sex, marital status, age, or public assistance status. So the option that states equal chance to obtain credit, with consideration of creditworthiness, is the best fit. The other ideas—automatic approval for all, discrimination being allowed, or lenders needing to approve everyone—conflict with ECOA’s protections and its requirement to base decisions on objective financial qualifications.