Credit Policy Changes Could Boost Scores, The three major credit reporting
agencies are implementing policy changes for credit scoring that could lift the scores of some consumers. Equifax, Experian, and TransUnion will now exclude exclude all tax lien data from credit reports, which could raise some credit scores as much as 30 points, CNBC reports.
The agencies began this process last summer, removing nearly 100 percent of data on civil judgments and 50 percent of data on tax liens from credit reports. The firms now will strike the remainder of tax lien data, a policy that began taking effect Monday.
About 11 percent of the population likely will have a judgment or lien removed from their credit file, according to estimates from LexisNexis Solutions.
“Analyses conducted by the credit reporting agencies and credit score developers FICO and VantageScore show only modest credit scoring impacts,” Eric Ellman, senior vice president of the Consumer Data Industry Association, said in a statement.
Credit scores are key for consumers who are applying for loans, such as a mortgage. FICO scores, for example, generally range from 300 to 850; anything above 700 is usually considered a good credit score.
#RealEstateForSale #Homeownership
Source: CNBC (April 16, 2018)
The agencies began this process last summer, removing nearly 100 percent of data on civil judgments and 50 percent of data on tax liens from credit reports. The firms now will strike the remainder of tax lien data, a policy that began taking effect Monday.
About 11 percent of the population likely will have a judgment or lien removed from their credit file, according to estimates from LexisNexis Solutions.
“Analyses conducted by the credit reporting agencies and credit score developers FICO and VantageScore show only modest credit scoring impacts,” Eric Ellman, senior vice president of the Consumer Data Industry Association, said in a statement.
Credit reporting and scores play a key role in most Americans' daily life. The process can determine the interest rate a consumer is going to pay for credit cards, car loans and mortgages — or whether they will get a loan at all.
The new rules come following a study by the Consumer Financial Protection Bureau that found problems with credit reporting and recommended changes to help consumers. (Incorrect information on a credit report is the top issue reported by consumers, according to the bureau.)
#RealEstateForSale #Homeownership
Source: CNBC (April 16, 2018)
No comments:
Post a Comment