True or False: Creditors may include medical information when assessing new credit applications.

The statement that creditors may include medical information when assessing new credit applications is false. Under the Fair Credit Reporting Act (FCRA), creditors are generally prohibited from taking medical information into account when making credit decisions. This restriction is primarily to protect consumers' privacy and ensure that lending practices are not influenced by potentially discriminatory factors related to an individual’s health status or medical history.

Medical information is considered sensitive and personal, and the use of such data in credit assessments could lead to harmful consequences or bias against individuals with certain health conditions. Therefore, creditors should not assess or utilize medical information in credit applications, reinforcing the incorrectness of the options suggesting that creditors could include such information.