New standards implemented by the three major credit reporting agencies are expected to raise the credit scores of millions of Americans!
As of July 1, 2017, the three credit reporting agencies – Equifax, Experian, and TransUnion – are removing civil judgment and tax lien data from credit reports if that data does not include the consumer’s complete information, such as full name, address, social security number, and date of birth. Reportedly, a majority of civil judgments and tax liens will be excluded from credit reports. This change applies to what is currently reporting and data that is added to reports in the future.
As a result of these improved standards for new and existing public records, millions of credit scores are expected to increase. According to a report by Fair Isaac, the company that calculates and sells FICO scores, about 7 percent of the population will have a civil judgment or tax lien removed from their credit report.
Credit scores for those affected by this change could rise by up to 20 points! The information contained in your credit report dictates your credit score, and your credit score determines your credit-worthiness. The higher your credit score, the more likely it is that you’ll be able to secure loans and lines of credit with favorable terms and low interest rates.
Check Your Credit Report
It is not uncommon for information to be misreported on credit reports. Everyone should keep an eye on their credit report – even if you are not having financial struggles. Also, it isn’t just mistakes or misreporting to be concerned about. Monitoring your credit report is a way to detect fraud and identity theft.
You are entitled to a free credit report every year from each of the three credit reporting agencies. You can order your free credit reports online from AnnaulCreditReport.com. Ordering from this site helps ensure a secure transaction. AnnualCreditReport.com is the only authorized source by federal law for free credit reports.
Credit reporting agencies have a legal duty to accurately report information and keep the information up-to-date. Carefully review your credit report for accuracy and dispute inaccurate information.
You have the right to dispute inaccurate, incomplete, or outdated information, or other mistakes or misreporting on your credit reports from Equifax, Experian, and TransUnion. The credit reporting agency must investigate your dispute and they 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. The FTC also offers a sample dispute letter you can use here.
If you are considering bankruptcy but worried about your credit score, read our article How Long is Bankruptcy On My Credit Report?
All of us here at the Law Office of Barbara B. Braziel are here to help you end your financial struggle and gain financial freedom. We offer free consultations. Contact us at (912) 351-9000 today!
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.