40,000,000 Credit Scores Could Improve on July 1st, 2017. Did your credit score improve July 1st? Here is why.
Starting July 1 another portion of the National Consumer Assistance Plan will go into effect and it should have a big impact on credit scores. The Repositories; Equifax, Experian, and TransUnion will exclude public tax lien and civil judgment data that doesn’t meet the new minimum reporting standards. According to the Consumer Data Industry Association, new and existing tax lien and civil judgment data must include a person’s name, address and either a Social Security number or date of birth in order to be included in credit repository file.
What can you expect?
- The National Consumer Assistance Plan is designed to reduce credit reporting errors by requiring all public records have more information about the consumer they are reporting on. Data reports must include a person’s name, address and either a Social Security number or date of birth.
- Consumers that have had a tax lien filed against them, have a 50 percent chance that it was and error and won’t show up on their credit report anymore.
- Improved dispute process, the repositories will now share disputes between them to improve data accuracy. The Repositories will also, monitor data furnishers for adherence to the announced reporting requirements and take corrective actions against data furnishers for noncompliance.
- Medical bills will now be required to wait for 180-days before they are allowed to be recorded on a credit report as due for collection. That should give consumers and their medical provider’s more time to resolve insurance payments and other billing issues before the debt shows up on the repository file.
Last September, The National Consumer Protection Plan limited the debt that could be reported without the proper agreement with the consumer. That stopped the reporting of things like library fines and traffic tickets. This agreement helps consumers because it makes the credit profiles more accurate. Stay tuned to our Blog for more information on the National Consumer Assistance Plan there is more to come. If you are ready to start the mortgage process now and get a Fannie Mae conditional approval in just minutes try our SNAP mortgage process.