In the United States, you need a good credit score to buy a home, get a credit card, qualify for good insurance, and in some cases, to get a job or rent an apartment. However, since credit scores were first introduced in 1989, many studies have argued they’ve widened the wealth gap in the United States, particularly the racial wealth gap.
Back in July, Joe Biden announced a plan to establish a new federal credit bureau. The idea is just one proposal in a lengthy 110-page document jointly produced by the Biden campaign and Vermont Senator Bernie Sanders. The new agency would be housed within the larger Consumer Protection Financial Bureau.
To be clear, a new public credit bureau would not replace the current credit reporting agencies like TransUnion, Equifax, and Experian. However, federal lenders would be required to use the new federal bureau for loans that are backed by the U.S. government, including certain housing and student loans like Federal Housing Adm… Read More