Summary
A new bill in the U.S. Congress aims to let people use on-time rent, utilities, and other bill payments to boost their credit scores. The Credit Access and Inclusion Act has bipartisan support and seeks to help those with little or no credit history gain better financial opportunities by including more types of payments in credit reports.
Key Facts
- The bill was introduced by Rep. Young Kim (Republican, California) and Rep. Janelle Bynum (Democrat, Oregon).
- It allows the inclusion of rent, internet, phone, electricity, and utility payments in credit histories.
- Around 26 million Americans are considered "credit invisible," meaning they have little or no credit history.
- The bill would let landlords and utility companies report on-time payments to credit agencies.
- Consumers can choose to opt out of reporting these payments.
- Utility companies cannot report late payments if a customer is in a repayment or debt forgiveness program.
- A federal study will be conducted to evaluate the impact of the expanded credit reporting.
- The bill's bipartisan support increases its chance of being approved.
