The proposed legislation, General Assembly Raised Bill No. 303, mandates that all Connecticut banks and credit unions must offer secured credit cards to their customers or members, effective October 1, 2026. A secured credit card is defined as a credit card account where the customer provides funds to the bank or credit union as collateral for the credit extended. Additionally, the bill stipulates that any bank or credit union issuing a secured credit card must provide account information to both the account holder and any third party authorized by the account holder, specifically for the purpose of reporting to a credit rating agency.

This bill aims to enhance access to credit for individuals who may have limited credit histories or lower credit scores by ensuring that secured credit cards are readily available. The inclusion of provisions for account information sharing is intended to facilitate the reporting of credit activity to credit rating agencies, which can help improve the credit profiles of consumers using secured credit cards.