Sens. Scott, Manchin Reintroduce Credit Access and Inclusion Act

Last week, U.S. Senators Tim Scott (R-S.C.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, and Joe Manchin (D-W.Va.) reintroduced the Credit Access and Inclusion Act. The legislation would expand credit access for millions of Americans with limited or non-existent credit histories by allowing property owners and utility and telecom providers to report payments data to credit reporting agencies. 

“If you pay your bills on time, your credit score should reflect it,” said Scott. “Americans shouldn’t be held back from purchasing a home, financing their education, or pursuing their dreams simply because their on-time payments don’t happen to count towards their credit scores. This bill will remove needless barriers and help hardworking Americans gain access to credit.”

Roughly 26 million Americans are considered “credit invisible,” and lack credit records or histories of traditional payments, making it difficult to make everyday financial decisions, such as buying a home, buying a car, taking out student loans, or getting a job.

The legislation would permit credit bureaus to collect payments data for services such as rent, phone, internet, utility, and electricity payments, which are not usually found in credit reports, which would both expand credit histories and produce credit scores for consumers considered “unscoreable.”

“Our current system denies many individuals who pay their bills on time the opportunity to establish a credit score,” said Manchin. “This bipartisan legislation would remove regulatory barriers and allow additional data, such as utility and rental payments, to be used to build credit.