The creditor may ask about marital status in a loan application. Which statement is true?

• A. The creditor may not ask about marital status at all.
• B. The creditor may ask about marital status and must use it to decide credit.
• C. The creditor may ask for marital status but may not use it in deciding credit or setting terms.
• D. Marital status is always a protected characteristic under all housing laws.

Answer: (C)

Lenders can collect marital status on a loan application to comply with anti-discrimination rules and to determine appropriate joint credit or ownership arrangements, but they may not base the approval decision or the loan terms on that status. The decision must rest on creditworthiness—income, debts, credit history, and ability to repay—not on whether the applicant is married or single. So the statement that matches this is that the creditor may ask for marital status but may not use it in deciding credit or setting terms. It’s not true that they can’t ask at all, and it’s not correct to say they must use marital status in decision-making, and the idea that marital status is always protected under all housing laws is too broad.