WASHINGTON, D.C. — U.S. Senator Katie Britt (R-Ala.), a member of the Senate Committee on Banking, Housing, and Urban Affairs, has joined Senator Tim Scott (R-S.C.), the committee’s ranking member, in introducing the Credit Access and Inclusion Act. The legislation seeks to expand access to credit for millions of Americans who have limited or no traditional credit history.
The proposed bill aims to help consumers establish credit by allowing property owners and providers of utilities and telecommunications services to report on-time payment data to credit bureaus. These types of payments—such as rent, internet, phone, and electricity—are not currently factored into most traditional credit reporting systems.
According to the Consumer Financial Protection Bureau, approximately 26 million Americans are considered “credit invisible,” meaning they lack sufficient credit records to generate a score. This lack of credit history can create significant barriers to home ownership, education financing, car loans, or even employment opportunities.
Senator Britt highlighted the importance of including non-traditional payment data as a means to help responsible individuals build a stronger financial profile. “Hardworking Americans who have demonstrated financial responsibility deserve a pathway to establish and build their credit,” Britt said. She noted that nearly one in five Alabamians falls into the category of being credit invisible or having a limited credit file.
Senator Scott also emphasized the commonsense nature of the bill, stating, “If you pay your bills on time, your credit score should reflect that.”
The legislation has attracted additional support from Republican Senators Mike Rounds (S.D.), Kevin Cramer (N.D.), and Bernie Moreno (Ohio). In the U.S. House of Representatives, Representative Young Kim (R-Calif.-40) is leading companion legislation.
Supporters of the Credit Access and Inclusion Act argue that the bill offers a responsible, market-based solution to improve financial inclusion, especially for consumers in low-income and rural areas. The bill revives a similar proposal introduced in the 118th Congress, which Senator Britt also cosponsored.
Critics of previous versions of this proposal have raised concerns about consumer privacy and the potential for increased negative reporting if such data is not used carefully. However, proponents contend that voluntary reporting mechanisms, along with proper safeguards, can help mitigate these risks while offering more Americans the opportunity to build or improve their credit profiles.
The bill is currently under consideration in the Senate Banking Committee.
