The House Financial Service Subcommittee wants to help consumers build credit, particularly lower-income Americans. A proposed bill seeks to help those with little to no credit build their credit with Alternative Data.
According to Representative Keith Ellison, millions of Americans can’t establish good credit scores, and this is particularly the case for Millennials, African-Americans, Latinos and immigrants. Congress should act to promote the credit reporting of alternative data, such as utility bills, cable TV bills, broadband bills, wireless cellphone bills and rent payments.
Dr. Michael Turner of the Policy and Economic Research Council (PERC) explained that there are currently 54 million American who are “credit invisible,” and because of this, many consumers have difficulty of accessing affordable sources of ordinary credit. Dr. Turner said, “a study has shown that $3.4 billion is stripped from credit invisibles each year”.
Currently PERC is undertaking a joint study with HUD on rental payment data that includes Public Housing Authorities (PHAs) and different credit reporting agencies.