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HR 5402

Credit Access and Inclusion Act of 2025

119th Congress Introduced by Young Kim

The Credit Access and Inclusion Act of 2025 improves credit access for underserved groups by including alternative data in reports and educating consumers about credit.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 5402

Summary of HR 5402: Credit Access and Inclusion Act of 2025

Overview

The Credit Access and Inclusion Act of 2025 (HR 5402) aims to enhance access to credit for underserved populations and promote financial inclusion. Introduced by Representative Young Kim on September 16, 2025, this bill seeks to address barriers that prevent individuals from obtaining credit, thereby fostering economic opportunities and stability.

Key Provisions

The bill includes several significant provisions designed to improve credit access:

  1. Credit Reporting Improvements:

    • Mandates the inclusion of alternative credit data in credit reports, such as rent and utility payment histories, to provide a more comprehensive view of an individual's creditworthiness.
    • Requires credit reporting agencies to ensure that this alternative data is accurately reported and accessible to lenders.

  2. Consumer Education:

    • Establishes programs aimed at educating consumers about credit scores, credit reports, and the importance of maintaining good credit.
    • Provides resources for individuals to understand their rights and how to dispute inaccuracies in their credit reports.

  3. Incentives for Lenders:

    • Introduces incentives for financial institutions that offer credit products to individuals with limited credit histories, encouraging them to expand their lending practices to underserved communities.

  4. Data Collection and Reporting:

    • Requires the Consumer Financial Protection Bureau (CFPB) to collect data on credit access disparities and report findings to Congress annually, ensuring transparency and accountability.

Impact

The Credit Access and Inclusion Act of 2025 is expected to have a broad impact on various stakeholders:

  • Consumers: Individuals, particularly those from low-income or minority backgrounds, will benefit from improved access to credit, which can lead to better financial opportunities, such as home ownership and small business loans.

  • Lenders: Financial institutions may see an increase in their customer base as they expand lending to previously underserved populations, potentially leading to increased profitability.

  • Credit Reporting Agencies: These agencies will need to adapt their practices to incorporate alternative data, which may require investment in new technologies and processes.

Legislative Process

  • Introduced: September 16, 2025
  • Current Status: The bill has been referred to the House Committee on Financial Services for further consideration.

Related Legislation

HR 5402 has a companion bill, S 1465, which is being considered in the Senate. This coordination between the House and Senate may facilitate a more streamlined legislative process.

Conclusion

The Credit Access and Inclusion Act of 2025 represents a significant step towards improving financial inclusion in the United States. By addressing barriers to credit access and promoting the use of alternative data, the bill aims to empower individuals and strengthen the economy. As the legislative process unfolds, stakeholders will be closely monitoring its progress and potential implications.

Compiled from official sources — confirm details with the bill’s official record.

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