Interesting, But Will Never Happen
For several reasons.
First it really isn't one's "credit history" or "rating" that matters today. It is the FICO score which determines what sort of credit risk one is and that score is used by all and sundry, from landlords to banks to insurance companies. The government cannot step in and mandate or do much with FICO because it is a private invention and or property if one wishes of Fair Issac Corporation. The federal government might or could try to force disclosure on how the rating is compiled and such, but that may also end up in the courts.
The United States federal government already has a long history of setting rules, laws, and regulating consumer credit markets, with mixed results. One thing even the most liberal in government know, like Barney Frank; push a bank or credit company too far, and they will simply withdraw from certian markets deemed "unprofitable" and move on. Pretty much what is happening today.
Problem is that Americans by and large have come to see access to credit as a right, not the honour it once was. Again, as one has repeatly stated, without access to easy credit, much of the Amercian economy would grind to halt (again, much like what we are seeing today).
From the banks and other grantors of credit's point of view, why should they lend money based upon historical information (credit reports/FICO scores), the applicant is not a good risk to repay the debt. Yes, credit has been extended to a wider population of Americans, but only by the industry finding ways to recoup costs and "make money". If the later does not happen, then you are not in a "business" but running a charity.
Much as everyone wants to beat up on banks and such, as the bank robber once replied, that is where the money is. Unless you want a federal government with trillons more debt on it's books, you don't want any sort of taking over any banks. Besides who would you get to run them? I hope no one is advocating creating yet another class of federal empolyees that cannot be fired (or at least not without great difficulty), and pretty much are a law unto themselves. We have already done that with airport security, again, with mixed results.
When things settle down, and they will, the landscape is going to be different. There will be a swing back to living on what one can afford, if not of fashion but out of necessity as credit becomes hard to obtain.
One cannot "force" banks and others to grant credit. Enough laws and regulations are already on the books to do just that, and some will say it lead to the lowering of standards that got us to this point.
Just as not everyone should own a home, not everyone should be allowed access to credit, or not vast amounts of it at least.
