You’ll Never Guess Why You May See A Jump In Your Credit Score This Summer
A new method in the way credit scores are calculated could mean that millions of Americans could soon see a boost in their own scores. In this issue, we’ll tell you what’s happening and why.
How Credit Score Calculations Are Changing
According to reports, on July 1, the three credit reporting agencies – Equifax, TranUnion, and Experian – will no longer include tax liens and civil judgments on your credit score and credit report if the information does not include or match your name, address and Social Security Number. The potentially negative information is being dropped as the result of a settlement with leaders in more than 30 states. Lawmakers in those states had complained that tax liens and judgments were in many cases linked to the wrong people.
What Does This Mean For Me?
It’s estimated that a tax lien could ding your credit score by as much as 100 points. So, if you have a lien on your record, this could be important for you. The folks at FICO say that about 12 million people will see an increase in their credit score. While most of those will benefit from a rise of 20 points or less, about 700,000 people could see a boost of 40 points or more.
Why It’s Important To Keep Track Of Your Credit Score and Credit Report
A 2012 study carried out by the Federal Trade Commission revealed that about 21% of American consumers had errors on their credit reports. As we wrote in a previous issue, you’re entitled to one free copy of your credit report every year from each of the three credit reporting companies. It’s important to do this because of a host of people in your life – from employers and landlords to lenders and insurers – rely upon what’s in your credit report before making their decisions about your accounts.
If Crippling Debt is Holding You Back, Call The Oswalt Law Group in Arizona
For advice about your options in dealing and coping with crippling debt, get in touch with us here at The Oswalt Law Group. We have offices in Phoenix, Tempe, and Peoria. The first consultation is always free, so call us at 602-225-2222.