Credit Score Changes Good Read

Dated: 07/21/2017

Views: 183

With recent changes to rules about what information can appear on a credit report, millions of potential borrowers can expect to see an increase in their credit score.

What are the changes?
As of July 1, 2017, credit reporting agencies will no longer include information about tax liens and civil court judgments in consumer credit reports unless the records contain a name, address, and social security number or date of birth that match a consumer's file. Under the new guidelines, reporting agencies are also required to update their public record information every 90 days.
These changes are in response to recent pressure on credit reporting agencies. Every year, agencies hear complaints from thousands of consumers about false information on their credit report and the subsequent difficulty they have in correcting that information.
What does this mean for borrowers?
Nearly 50% of tax liens and 96% of civil judgments do not meet the updated identification standards, according to LexisNexis Risk Solutions. After July 1, these records may no longer affect a potential borrower's credit report.
As a result of this change, FICO® estimates that about 12 million people will experience an increase in their credit scores. The majority will see up to a 20 point increase, and some will see increases of 40 points or more.

These updated credit reporting guidelines could help decrease your client's mortgage insurance premiums and interest rates and help expand the loan programs they may qualify for.

Blog author image

Carolann Newton

I was a domestic paralegal for 8 years prior to Real Estate. Since I have been in Real Estate I have grown to love this business, even though it does have it's challenges; it is very exciting. There i....

Latest Blog Posts


DON’T LOOK WHERE YOU DON’T WANT TO GO Are you familiar with the idea that we tend to attract more of what we focus on? Here’s a great story that perfectly illustrates this concept.

Read More

5 Disasters That Always Leave New Homeowners Clueless

5 Disasters That Always Leave New Homeowners CluelessLike what to do when a tree falls. Read Visit for more articles like this.

Read More

Fall For Greenville Music Line Up

Are you headed to Fall for Greenville this weekend? The link below will provide you the musical line up! So thankful the bad weather is behind us and everyone can enjoy this amazing event! :

Read More

12300 Indian Mound Road Ware Shoals SC

29692 - Updated Sept 2018!! - New kitchen counters and appliances! Original wood flooring reconditioned throughout the house. All rooms freshly painted! Wrap around porch with new floors and new

Read More