The three credit reporting agencies – Equifax, Experian, and TransUnion – are now excluding tax liens from credit reports. This means some credit scores will increase, and some by as much as 30 points.
The removal of tax liens from credit reports comes as a direct result of improved standards for utilizing new and existing public records. The credit bureaus implemented improved standards last July that required the bureaus to remove civil judgment and tax lien data from credit reports if that data did not include the consumer’s complete information, such as full name, address, social security number, and date of birth. It was reported that such a change would exclude a majority of civil judgments and tax liens from credit reports.
Disputing Incorrect Information on Your Credit Report
The reporting of incorrect information is the number one issue reported to the bureaus by consumers. Incorrect information can lead to a lower credit score, which is a determining factor in the interest rate you’ll be offered for credit cards, car loans, and mortgages, and moreover, affects whether you can get a loan at all.
It is important that you dispute inaccurate information misreporting on your credit reports from Equifax, Experian, and TransUnion. The credit reporting agency must investigate your dispute and it must delete inaccurate, incomplete, or unverifiable information within 30-days. The Federal Trade Commission (FTC) offers step-by-step instructions for disputing inaccurate information here and offers a sample dispute letter you can use here.
Tactics to Raise Your Credit Score
Ensuring the information reporting on your credit report is accurate and complete is one way to raise your credit score. Other credit-score-boosting tactics include:
- Always make payments on time. One report found even a single late payment could lower your credit score by 60 to 110 points, depending on other items in your credit history.
- Do not max out your credit cards. Using a high percentage of your available credit can lower your credit score. Aim to use only 30 percent (or less!) of your available credit limit.
- Get out of debt. Paying down debt, and ultimately paying off debt, helps to raise your credit score.
We hope the foregoing helps you better understand your credit score and what you can do to ensure it is as high as possible.
If you are facing a serious debt problem and want to explore your options for getting out of debt, we invite you to come in for a free, no obligation consultation.
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