Senate Banking Committee Chairman Tim Scott has introduced the Credit Access and Inclusion Act. This legislation aims to expand credit access for Americans with limited or no credit histories by allowing property owners and service providers to report payment data to credit agencies.
Senators Mike Rounds, Katie Britt, Kevin Cramer, and Bernie Moreno are co-sponsoring the bill. Chairman Scott emphasized the bill’s purpose: “It’s simple, if you pay your bills on time, your credit score should reflect that.” He added that it will help those who manage finances responsibly to access opportunities like homeownership and education.
Senator Rounds highlighted the issue faced by many: “Over 40 million Americans are considered ‘credit invisible’… This places them at a disadvantage when it comes to gaining access to credit.” He explained that the bill would enable credit bureaus to utilize alternative data, such as rent and utility payments, to build credit histories.
Senator Britt noted, “Access to credit is a crucial component to establishing financial stability and economic independence… this legislation simply incorporates a more complete history of on-time payments.” Senator Cramer also pointed out the current limitations: “The narrow scope of credit reporting today doesn’t include these payments.”
Senator Moreno remarked on the benefits: “Having a good credit score means the opportunity for Americans to make pay less interest.” Representative Young Kim is leading the House version of the bill, stressing that, “The Credit Access and Inclusion Act expands ways for hardworking Americans to grow their credit.”
Currently, around 26 million Americans are “credit invisible.” This new legislation seeks to incorporate timely payments for services like rent, phone, and utilities into credit reports, aiming to improve economic opportunities for many.
