A groundbreaking bipartisan bill introduced in Congress could revolutionize how millions of Americans build credit scores, potentially opening doors to premium travel credit cards and better loan terms. The Credit Access and Inclusion Act, sponsored by Representatives Young Kim (R-CA) and Janelle Bynum (D-OR), would allow rent, utility, and phone payments to count toward credit scores for the first time.

What the Credit Access and Inclusion Act Would Change

The proposed legislation addresses a major gap in the current credit system: roughly 26 million Americans are considered "credit invisible," meaning they lack traditional credit histories from student loans, car payments, or mortgages. These individuals often struggle to qualify for credit cards, loans, or favorable interest rates despite consistently paying their bills on time.

Under the new bill, several types of regular payments could boost your credit score. This includes rent payments to landlords, electricity and gas utility bills, internet and phone service payments, and other recurring household expenses.

The legislation includes important consumer protections. You can opt out of reporting for specific categories if desired, and utility companies cannot report late payments if you're meeting the terms of a repayment or debt forgiveness program.

Why This Matters for Travel Enthusiasts

Building a strong credit score is crucial for accessing the best travel rewards credit cards. Premium cards like the Chase Sapphire Reserve or American Express Platinum Card typically require excellent credit scores, often 700 or higher.

For young professionals, recent graduates, or anyone rebuilding their credit, the current system creates a frustrating catch-22. You need good credit to get approved for rewards cards, but you need credit cards to build good credit. This legislation could break that cycle by recognizing the financial responsibility you already demonstrate through timely rent and utility payments.

Better credit scores translate directly to better travel opportunities. Higher scores mean access to premium cards with valuable benefits like airport lounge access, hotel elite status, and generous welcome bonuses. They also qualify you for better interest rates on travel loans or mortgages, freeing up more money for vacations.

How Credit Scores Affect Travel Card Approvals

Understanding where you stand is crucial for travel rewards strategy. With excellent credit scores of 750 and above, you typically qualify for any travel credit card, including premium options with the highest welcome bonuses and most valuable benefits. Good credit in the 700-749 range opens doors to most travel cards, though you might not always receive the highest credit limits or best promotional offers.

Fair credit between 650-699 limits options significantly. You'll likely need to start with entry-level travel cards like the Chase Sapphire Preferred or no-annual-fee options before working up to premium cards. Poor credit below 650 makes travel rewards challenging, requiring you to start with secured cards or basic cash-back options to build your score before pursuing travel rewards.

Real-World Impact: From Rent Payments to Premium Travel

Consider a typical scenario: a 25-year-old professional has been paying $1,800 monthly rent, $150 in utilities, and $100 for phone and internet services for two years. That's $49,200 in on-time payments that currently don't help their credit score at all.

Under the proposed legislation, this payment history could potentially boost their credit score by 20-60 points, according to industry estimates. This improvement could mean the difference between being denied for a premium travel card and qualifying for a 100,000-point welcome bonus worth over $1,000 in travel.

Strategic Opportunities for Building Travel Credit

If this bill passes, savvy consumers should consider several strategic moves. Ensure all your rent and utility payments are made on time consistently, as even one late payment could hurt rather than help your credit score.

Consider consolidating utility accounts in your name to maximize the credit-building impact. If you're sharing utilities with roommates, having the accounts in your name means you get the credit benefit. Keep detailed records of all payments for your own reference, even though reporting would be handled by landlords and utility companies.

Most importantly, use any credit score improvements to strategically apply for travel rewards cards. The Bilt Mastercard already allows you to earn points on rent payments, and combining that with improved credit from rent payment history creates a powerful one-two punch.

Current Alternatives for Credit Building

While waiting for potential legislation, several options exist for building credit without traditional loans. Rent reporting services like RentTrack and Rental Kharma already allow you to report rent payments to credit bureaus, though adoption is limited and typically requires fees. Secured credit cards remain one of the most reliable ways to build credit from scratch, where you provide a security deposit that becomes your credit limit, then use the card responsibly to establish payment history.

Credit-builder loans from banks or credit unions are specifically designed to help establish credit history. You make payments into a savings account, then receive the funds once the loan is paid off. Consider becoming an authorized user on a family member's account with good payment history, as this can boost your score quickly, though results vary by credit bureau.

What Happens Next

The bipartisan nature of this bill increases its chances of passage, though the timeline remains uncertain. Financial literacy experts are cautiously optimistic about its prospects given broad congressional support.

If passed, implementation would likely take 12-18 months as credit reporting agencies update their systems and landlords and utility companies establish reporting procedures.

The legislation also calls for a federal study examining how additional data like cash flow analysis and payroll deposits could further improve credit scoring accuracy.

Preparing for Change: Action Steps

Whether or not this bill becomes law, focus on the fundamentals of good credit management. Pay all bills on time, including rent and utilities, keep credit card balances low relative to limits, and avoid opening unnecessary new accounts. If you're currently "credit invisible," consider starting with a secured credit card or becoming an authorized user while maintaining perfect payment habits across all your expenses.

Monitor your credit regularly using free services like Credit Karma or checking your reports annually through AnnualCreditReport.com. When your score improves, have a travel credit card strategy ready by researching which cards align with your travel goals and spending patterns.

The Bigger Picture for Travel Rewards

This potential change represents a broader shift toward more inclusive credit scoring. Recent years have seen expanded recognition of alternative payment histories, from utility reporting services to rent tracking platforms.

For the travel rewards community, more people with good credit scores means increased competition for premium cards and potentially better welcome bonuses as issuers compete for customers.

It also democratizes travel rewards access. Currently, premium travel benefits are largely limited to those with traditional credit histories, often excluding younger travelers, immigrants, and others building credit from scratch.

Bottom Line

The Credit Access and Inclusion Act could be game-changing for millions of Americans currently locked out of the best travel rewards opportunities due to thin credit files. While the bill's passage isn't guaranteed, its bipartisan support and common-sense approach to recognizing responsible financial behavior make it promising legislation.

For anyone currently struggling to build credit or qualify for travel rewards cards, this bill offers hope for a more inclusive credit system. In the meantime, focus on maintaining perfect payment habits across all your expenses – not just credit cards and loans, but rent, utilities, and other bills that might soon count toward your credit score.

The key is being ready to capitalize on any credit score improvements with a strategic approach to travel rewards. Better credit opens doors to premium cards, higher welcome bonuses, and the travel lifestyle that comes with maximizing points and miles.

Frequently Asked Questions

Q: When would this bill take effect if passed?A: Implementation would likely take 12-18 months after passage as systems are updated and reporting procedures established.

Q: Would all rent and utility payments automatically be reported?A: No, consumers can opt out of specific categories, and not all landlords and utility companies may choose to participate initially.

Q: How much could this improve my credit score?A: Industry estimates suggest 20-60 point improvements are possible, depending on your current credit profile and payment history length.

Q: Can late utility payments hurt my credit under this system?A: Yes, but the bill includes protections preventing reporting of late payments if you're meeting repayment program terms.

Q: Should I wait for this bill before applying for travel credit cards?A: Don't wait if you currently qualify for cards you want. Focus on building credit through existing means while this legislation progresses through Congress.