Congress has been famously ineffective in recent months with their approval ratings lower than ever. If there was ever a time to put aside partisan politics and work together, now is that time, and at My Credit Specialist, we have a recommendation for a law that would improve the credit standing of consumers across the country.
This summer, the Credit Access and Inclusion Act was introduced in Congress. Currently, credit scores are based on payment of credit cards, auto loans, mortgages, and other lines of credit. The proposed law would add rent payments and utility bills including cable to the credit score calculation.
What does this mean for the average consumer? First, it would decrease the number of people with blank credit reports and no credit score. If they made their rent and utility payments on time, it would count in their favor in their credit score. It would also eliminate the Catch-22 of having no credit. A person is likely to get turned down for a loan or credit card if they have a blank credit report, but how are they going to establish credit if no one will give them a loan or credit card?
Opponents of the bill argue that including rent payments or utility bills could damage credit scores for consumers who haven’t kept up with these bills. This is a really thin argument, however, because including these payment histories are actually providing a more comprehensive overview of the consumer and their ability to make their payments. Consumers should make their utility and rent payments on time, whether or not they are included on a credit report, and for responsible consumers, this will only help their credit standing.
If you think the Credit Access and Inclusion Act should be law, we recommend contacting your elected officials and telling them how it could benefit you and other Americans struggling with low credit or no credit. If you want more tips for improving your credit, call My Credit Specialist today or visit us online at http://www.mycreditspecialist.com. You can also get credit tips and news delivered to you via Facebook, Twitter, and YouTube.
Image courtesy of Jeroen van Oostrom / FreeDigitalPhotos.net