TransUnion has long been a proponent of advancing financial inclusion through the use of alternative data, such as rent and utility bills, on credit reports. We believe it has the potential to elevate more than 60 million credit-invisible or credit-disadvantaged people — those who would not qualify under traditional credit evaluations — to new opportunities that would otherwise be unavailable to them.
That’s why we’re proud to support the Credit Access and Inclusion Act, sponsored by Senators Tim Scott (R-SC) and Joe Manchin (D-WV). This legislation is an important step toward broadening the data shared with credit reporting agencies so more consumers can access financial opportunity. The bipartisan bill would encourage the reporting of alternative data to credit reporting agencies, like TransUnion, which in turn, could position millions of Americans to reach their financial goals by enabling them to establish and enhance their credit through payments they’re already making.
Some Americans haven’t had the opportunity to build credit through traditional means, such as by making credit card or car payments. However many still have a strong financial track record by always paying their rent, utilities and cell phone bills on time.
The inclusion of this kind of alterative data opens financial doors for consumers that otherwise may not be accessible. TransUnion supports this inclusive legislation, and encourages Congress to quickly advance this bill that will help millions of Americans access more financial opportunities.