Is it a legal necessity for a business to reject a service to me due to the absence of a credit reference?

UPDATED: Dec 21, 2013

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Is it a legal necessity for a business to reject a service to me due to the absence of a credit reference?

Since I never borrow money, I do not have a credit reference. Do I have any “rights” to respond to the statement “you have no credit reference so we can’t do business with you” ?

Asked on December 21, 2013 under Business Law, Alabama


Anne Brady / Law Office of Anne Brady

Answered 9 years ago | Contributor

A business is perfectly within its rights to refuse to do business with someone who has no credit history.  A business can not be required to extend credit to someone.  If this is a utility, they should be willing to do business with you if you put down a deposit.  Another option might be obtaining a prepaid credit card to build a credit history and do business with other businesses.

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