Jefferson Reporter

U.S. Senator Katie Britt of Alabama has teamed up with Senator Tim Scott of South Carolina to introduce the Credit Access and Inclusion Act. This piece of legislation aims to broaden credit access for Americans who presently have limited or no credit histories, thus enhancing their financial opportunities.

Senator Britt stated, "Hardworking Americans who have demonstrated financial responsibility deserve a pathway to establish and build their credit. 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."

The proposed bill permits landlords and providers of utilities and telecommunication services to report payment data to credit reporting agencies. This initiative will allow consumers with timely payment habits to build a positive credit history.

Chairman Scott commented, "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 is also supported by Senators Mike Rounds, Kevin Cramer, and Bernie Moreno. Additionally, a parallel proposal is being led by Representative Young Kim in the House of Representatives.

Current statistics show that approximately 26 million Americans are "credit invisible," meaning they do not have a record of traditional credit activities such as student loans, car loans, or mortgages. As a result, they face significant challenges in achieving economic mobility.

Senator Britt highlighted the personal significance of this issue, noting that about a fifth of Alabamians are either "credit invisible" or possess a thin credit file. These individuals are often from low-income and rural communities.

The Credit Access and Inclusion Act would allow credit bureaus to include payment information from non-traditional sources like rent, internet, phone, and utilities in credit reports. This approach seeks to expand credit histories and generate credit scores for previously "unscoreable" individuals.

Senator Britt has been a proponent of this legislative solution, having supported similar proposals in past congressional sessions. The full text of the bill is available for review.