The "Credit Access and Inclusion Act of 2025" allows landlords, utility, and telecommunication companies to report consumers' payment history to credit reporting agencies, with certain restrictions and a study on the impact of these changes.
Tim Scott
Senator
SC
The "Credit Access and Inclusion Act of 2025" amends the Fair Credit Reporting Act to allow landlords, utility, and telecommunication companies to report consumers' payment history to credit reporting agencies, potentially boosting credit scores. It defines which entities are covered and limits the type of utility information that can be reported. The bill also protects consumers on payment plans with energy utility firms from being reported as late and requires a report to Congress on the law's impact.
Rent and Utility Payments Could Soon Hit Your Credit Report Under Proposed Act
This bill, the "Credit Access and Inclusion Act of 2025," proposes a significant change to how your credit history is built by amending the Fair Credit Reporting Act (FCRA). It would allow companies you pay for essential services – think landlords, electric companies, and internet/phone providers – to report your payment track record to credit reporting agencies like Experian, Equifax, and TransUnion.
Paying the Rent Might Pay Off (or Cost You)
Here's the core idea: Section 623 of the FCRA, which governs what companies report about you, would be updated. This change specifically greenlights landlords and companies defined as "energy utility firms" (like your gas or electric provider) and "utility or telecommunication firms" (covering services delivered through pipes, wires, or wirelessly) to furnish information about your payment performance.
What does this mean in practice? If you consistently pay your rent or utility bills on time, this information could potentially boost your credit score, which is great news if you have a limited credit history or are trying to improve your score. Conversely, if you fall behind on these payments, that negative information could also end up on your credit report, potentially lowering your score and making it harder to qualify for loans, credit cards, or even future housing.
Getting into the Weeds: Reporting Rules and Protections
The bill sets some ground rules. For utility and telecom companies, the information shared is limited mainly to your payment history, any deposits required, discounts received, or details about service interruptions or termination conditions (as outlined in SEC. 2).
There's a specific protection built in for energy bills: if you've set up a payment plan with your gas or electric company and you're meeting its terms, the company cannot report you as being late on payments (SEC. 2). It's important to note this specific protection applies only to "energy utility firms" as defined in the bill.
The legislation also extends certain liability protections (under FCRA Section 623(c)) to these new reporters. This generally means these companies face fewer lawsuits from individuals under specific FCRA sections related to reporting errors, though government agencies might still be able to take action.
The Bottom Line: Access vs. Risk
This act aims to broaden the path to building credit, potentially helping people who don't use traditional credit products demonstrate their financial reliability through everyday bill payments. However, it also introduces a new risk: falling behind on essential bills like rent or utilities could now directly harm your credit score. This could disproportionately affect individuals facing financial instability, potentially creating new hurdles for accessing housing or essential services. To track these effects, the bill requires the Comptroller General to study the real-world impact on consumers and report back to Congress within two years.