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U.S. Senator Katie Britt, R-Ala., a member of the Senate Committee on Banking, Housing and Urban Affairs, joined Chairman Tim Scott, R-S.C., in introducing the Credit Access and Inclusion Act, legislation to responsibly expand credit access for millions of Americans with limited or non-existent credit histories.
“Hardworking Americans who have demonstrated financial responsibility deserve a pathway to establish and build their credit,” said Senator Britt. “This bill takes into consideration the varying circumstances and experiences of individuals who hope to achieve their American Dream. Access to credit is a crucial component to establishing financial stability and economic independence for individuals and families – this legislation simply incorporates a more complete history of on-time payments, like rent and utilities, to reflect an accurate credit score and open the door to financial opportunities.”
By allowing property owners and utility and telecom providers to report payments data to credit reporting agencies, this bill will help consumers with an established track record of paying their bills on time develop a positive credit history.
“It’s simple, if you pay your bills on time, your credit score should reflect that. This commonsense bill will reward hardworking Americans who manage their finances responsibly, expanding access to credit to help them purchase a home, finance their education, or pursue their dreams,” said Chairman Scott.
Senators Mike Rounds, R-S.D., Kevin Cramer, R-N.D., and Bernie Moreno, R-Ohio, also joined Chairman Scott and Senator Britt on the bill. Representative Young Kim, R-Calif.-40, is leading companion legislation in the House of Representatives.
Approximately 26 million Americans are “credit invisible,” meaning they lack credit records or history of traditional payments, such as student loans, car loans or mortgage payments. Having no credit or thin credit makes economic mobility difficult and hampers an individual’s ability to purchase a home, take out student loans, buy a car or even get a job.
Senator Britt has long called for a legislative solution to this problem. In an April 2023 Senate Banking hearing, she stated, “. . . this is personal to me. One-fifth of Alabamians . . . are either ‘credit invisible’ or have a thin credit file for lack of credit history.” Senator Britt added that a significant portion of this group consists of consumers from low-income and rural areas.
The Credit Access and Inclusion Act allows credit bureaus to collect payments data for services not traditionally factored into credit reporting, such as rent, internet, phone, electricity and utility payments. Factoring these payments into credit reporting would expand credit histories and generate credit scores for consumers who were previously “unscoreable.”
Senator Britt was also a cosponsor of this legislation in the 118th Congress. The full text of the bill can be found here.
