Republican Sen. Tim Scott has teamed up with Democratic Sen. Joe Manchin to present a new piece of law that will make it easier for “invisible” American consumers to establish credit scores. This legislation, called the Credit Access and Inclusion Act, will modify the existing Fair Credit Reporting Act, enabling landlords and telecom providers to report specific consumer credit information to credit reporting agencies. If the consumer makes prompt payments, it will influence their credit score positively.
Tim Scott And Joe Manchin Join Forces On Bill To Help 'Invisible' Americans Build Credit Scoreshttps://t.co/0bjI9IImox
— Daily Caller (@DailyCaller) May 17, 2023
Senator Scott, a prominent member of the Senate Banking Committee, stated that “If you pay your bills on time, your credit score should reflect it” and that “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.” With this law, Congress is eradicating these unnecessary stumbling blocks that limit American citizens from fulfilling their dreams.
According to the National Credit Union Association, about 26 million Americans lack credit scores, making it arduous for them to acquire a home or car or even find a job. However, the Credit Access and Inclusion Act will enable credit reporting agencies to retrieve payment information on internet, rent, phone, electricity and utility bills to expand credit histories and create credit scores for individuals previously deemed “credit invisible.” This way, people who have been paying their bills on time can have access to better credit opportunities, which would allow them to achieve their dreams.
Acknowledging the importance of credit scores in facilitating the American dream, Senator Manchin asserted that “Good credit is a gatekeeper to the American dream. However, our current system denies many individuals who pay their bills on time the opportunity to establish a credit score.” He urged his colleagues to support the proposed bill, which will eliminate regulatory barriers and help millions of people across America, including those in West Virginia, who have been invisible to the credit system until now.
Senator Scott has introduced other laws, including the Credit Score Competition Act in 2017 and the Building Credit Access for Veterans Act last year, to help include “credit invisible” consumers in the housing market and increase options for credit scoring for American veterans and current servicemembers, respectively.
In conclusion, the Credit Access and Inclusion Act is a welcome development for the American people, particularly those struggling to establish credit scores. The legislation will eliminate unnecessary bureaucratic barriers and enable millions of hardworking Americans to have access to the credit they need to achieve their goals and socioeconomic mobility. It is a victory for all Americans.