CFPB and FTC Mandated to Study Including Rent, Utility Payments, and EBT Data in Credit Scores by 2025

This legislation mandates a joint study by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) to figure out how incorporating non-traditional data would change credit scoring models. By December 31, 2025, the agencies must report back to Congress on what happens when scores start factoring in things like on-time rent payments, utility bills, and even detailed bank transaction data. Essentially, they are kicking the tires on whether the established way of calculating creditworthiness is still fit for purpose, especially for those who don’t have much traditional credit history.

The Data Revolution: What They're Looking At

The study’s scope is massive, covering nearly every corner of your financial life outside of your credit card statements. The bill specifically lists a dozen “key factors” the agencies must examine (SEC. 1. (b)). This includes your payment history for rent, utilities, telecom services, and even your “Buy Now, Pay Later” installment loans. For the millions of people who pay these bills reliably but get no credit score boost, this could be a major step toward financial inclusion—finally giving credit where credit is due for being a responsible tenant or utility customer.

Where Inclusion Meets Privacy

While recognizing on-time rent payments sounds great for renters, the list of data points gets significantly more sensitive, raising some serious questions. The study is required to look at “Transaction records from Electronic Benefit Transfer (EBT) systems” and “Transaction data pulled directly from your bank or credit union accounts.” This is where the rubber meets the road on privacy. For people who rely on EBT, the idea that the government might study how that sensitive data could be factored into a credit score—which affects everything from housing applications to insurance rates—is a major concern. Similarly, allowing detailed bank transaction data to be pulled for scoring purposes is a huge ask, potentially opening the door to invasive financial scrutiny that goes far beyond simple debt repayment history.

The Real-World Impact on Your Wallet

If the study finds that these new factors can be safely and fairly integrated, the upside is clear: more people could qualify for better loans. Imagine a young adult who has always paid their $1,500 monthly rent on time but has never owned a credit card; incorporating that rent history could instantly give them a score good enough to finance a car or qualify for a mortgage. However, the risk lies in how these new factors are weighted. If the study leads to models that penalize consumers for using services like EBT or having volatile bank balances, it could inadvertently harm the very people it aims to help. This entire exercise is procedural—it doesn't change policy yet—but it lays the necessary groundwork for potentially massive changes to how financial risk is assessed in the U.S. within the next few years.