Bill in Congress would make rent, utility and cable bill payments part of calculating credit scores

[BluegrassStateBlues]

A proposal to change the way credit scores are calculated—to include non-loan payments such as rent, utility and cable bills—is gaining momentum as a way to help more Americans establish and improve their credit worthiness. But dig deeper, credit experts say, and one finds that such reforms may end up hurting consumers more than helping them.

Consumers’ credit scores are currently determined by the information on their credit reports, which is supplied mostly by lenders. The scores favor consumers who handle credit responsibly and penalize those who fall behind on payments or stay away from credit altogether. The push to include borrowers’ payment histories on non-loan accounts like monthly rent bills is now before Congress as part of the “Credit Access and Inclusion Act,” which was introduced in the summer.

Advocates say consumers who make these payments on time will be rewarded with a higher credit score, which will in turn give them access to affordable credit. If enacted, the bill wouldn't require providers to report this information—it would just state that such reporting is permitted. In an emailed statement, Congressman Keith Ellison (D-Minn.), who co-sponsored this bill, said: “Our current credit reporting system leaves more than 50 million people without a credit score…Including more data in credit reports will make it easier to get and improve a credit score.”

http://www.marketwatch.com/story/should-credit-scores-include-rent-and-cable-bills-2013-10-21?link=sfmw

[msongs]

1. we should also get a money % from all income derived from selling "our" credit scores nt

[DJ13]

2. Thats a bad idea

That would allow your credit company to use a late payment on a utility to raise your CC rates.

[BlueJazz]

3. Yes...and worse than that. EX: My neighbor has his Dish Network payments automatically...

...paid for by the bank..each month.
They've screwed it up 3 times in the past 14 months and he's had to raise hell with them. So what if Dish puts a report into his
Credit Report that he's not on time??...Yep...He's Screwed. (you know how hard it is to get that stuff straightened out)

[Duer 157099]

4. 2 questions:

1) retroactive, or beginning from when/if the bill is approved? Not fair if retroactive. People may preferentially pay on time those bills they know will be reflected in their scores.

2) So now a landlord is responsible for credit reporting? What if they don't want to?

[karadax]

5. Homeowners won't like having to

Deal with a tenant that missed a payment and gets their credit rating messed with. Messing with someone's credit is a responsibility that as a homeowner I do not want.