Credit scores are a key measure of consumer financial health, and they primarily derive from car, home, and student loans, along with credit cards. However, 26 million Americans remain “credit invisible” due to a lack of credit records or repayment history. This invisibility affects their ability to secure credit and other financial services.
U.S. Senator Kevin Cramer of North Dakota has collaborated with Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott to introduce the Credit Access and Inclusion Act. This legislation suggests that credit bureaus should include additional payments, such as rent and utilities, into credit histories. It aims to provide credit scores for those previously considered “unscoreable” and offer a more accurate reflection of fiscal behavior.
Sen. Cramer highlighted, “Millions of Americans pay their utilities, their rent, and their phone bill and other things on time every month, but the narrow scope of credit reporting today doesn’t include these payments, so it doesn’t get calculated into their credit score.” He added, “Our bill is really a simple fix to expand the credit reporting that will then allow these responsible Americans to build credit.”
Tim Scott emphasized, “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.”
The bill has additional support from Senate Banking Committee members, including Senators Mike Rounds, Katie Britt, and Bernie Moreno.
