# Understanding the RISK Act

This bill would change federal credit laws to allow banks, credit card companies, and other lenders to refuse credit to people who don't have legal immigration status in the United States. Currently, federal law prohibits lenders from discriminating against people based on certain protected characteristics, but immigration status isn't explicitly mentioned as something lenders can use to deny credit. This bill would add immigration status to the list of reasons a lender can legally refuse to give someone a loan, credit card, or other forms of credit.

The practical effect is straightforward: if you don't have lawful immigration status, lenders would be permitted to turn you down for credit simply because of that status, regardless of your credit history, income, or ability to repay. This could make it much harder for undocumented immigrants to access mortgages, car loans, credit cards, or business loans. Right now, some lenders already check immigration status informally, but this bill would explicitly authorize them to do so and make it a legal basis for denial.

The bill doesn't require lenders to check immigration status or deny credit to undocumented immigrants—it just gives them permission to do so if they choose. However, it could create a chilling effect where more lenders adopt this practice. For people without legal status who currently have credit or are trying to build credit, this could limit their financial options and make it harder to buy homes, start businesses, or handle emergencies that require borrowing money.

RISK Act

Self, Keith

Reinforcing Immigration Status for Credit Knowledge Act or the RISK ActThis bill allows a creditor to refuse to extend credit to a non-U.S. national (alien under federal law) who does not have lawful status under U.S. immigration laws.