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BISMARCK, N.D.  – Credit scores compiled from loan and payment data are a common indicator of overall consumer financial health. Credit data is typically sourced from car, home, and student loans as well as credit cards and other lines of credit. While most Americans have a variety of data streams, about 26 million Americans are “credit invisible” and lack credit records or repayment history. These scores are essential to securing further lines of credit and impact a consumer’s ability to access financial products like car loans or mortgages.

U.S. Senator Kevin Cramer (R-ND), a member of the Senate Banking, Housing, and Urban Affairs (Banking) Committee, joined Chairman Tim Scott (R-SC) in introducing the Credit Access and Inclusion Act to include additional payments to be factored into credit history. This bill allows credit bureaus to collect payments data for services not traditionally factored into credit reporting, such as rent, internet, phone, electricity, and utility payments. Factoring these payments into credit reporting would expand credit histories and generate credit scores for consumers who were previously “unscoreable.” If enacted, people who pay their bills on time in cash will generate a credit score reflective of their fiscal responsibility.  

“Millions of Americans pay their utilities, their rent, and their phone bill and other things on time every month, but the narrow scope of credit reporting today doesn’t include these payments, so it doesn’t get calculated into their credit score,” said Cramer. “Our bill is really a simple fix to expand the credit reporting that will then allow these responsible Americans to build credit.”

“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,” said Chairman Scott.

Senate Banking Committee cosponsors include U.S. Senators Mike Rounds (R-SD), Katie Britt (R-AL), and Bernie Moreno (R-OH).

Click here for bill text.