CLEVELAND, OH (WOIO) - The rules are about to change for the three major credit reporting agencies and it means millions of Americans are about to get a slight boost to their credit scores.
Starting July 1, most tax liens and civil judgments will be will be removed from reports on the three major bureaus Experian, Equifax, and TransUnion.
This comes after a report from the Consumer Financial Protection Bureau who found too often there are errors on consumers credit reports. The new rule says without very specific information on say a civil lawsuit or tax lien, it can't be listed. For example consider someone hit for thousands of dollars in a civil lawsuit and hasn't paid. That has been a ding on a credit report, but because the credit bureaus aren't doing the work to find things like why, how and if a deal has been worked out it can't be listed.
"Sloppy tactics such as attributing judgments to consumers without full identifying information increase error rates," said Persis Yu, a National Consumer Law Center attorney.
It's believed this will impact about six to nine percent of Americans which is about 12 to 20 million people according to WalletHub the personal financial website.
The change may be small but as we all know any positive points to your score are a big plus. It's estimated for those who get these items removed their score could increase between 10 and 20 points.