The three largest credit-reporting agencies, Equifax, Experian, and TransUnion, will begin cleaning up credit reports in July 2017, which could help lift the credit scores of about 12 million consumers.
One in four people say they spot errors in their credit reports, most commonly concerning tax liens and civil judgments. Although, up to half of tax lien data on a credit report is inaccurate or incomplete (keep your eye out for errors). Civil judgments ( a court has ruled a person owes money) – tend to have many errors on a credit report which consumers can dispute, but the process can be cumbersome.
Beginning July 1, Equifax, Experian and TransUnion will automatically exclude tax lien and civil judgment records from credit reports IF they are missing a person's name, address, Social Security number or date of birth. Claims that do contain this key information, however, will remain on credit reports.
Six percent of Americans with a credit score (about 12 million) will likely see their score go up once the new policy takes effect. About 11 million could see an increase of about 20 points.
Borrowers who are on the cusp of qualifying for a home loan may stand to benefit the most. To be approved for an FHA loan you must have a 580 credit score, if you are close, keep an eye out on your credit score this next month and see if you are one of the lucky ones to have your credit corrected!!!
If your credit score is in the mid 500's, contact me, I can steer you in the right direction to have your credit cleaned up and get you pre-approved to buy YOUR NEW HOME!!
Source: "Have a Bad Credit Score? It Could Soon Get Better – But Is It Enough to Buy a Home?" realtor.com® (June 22, 2017)