Changes to Reporting Could Mean Higher Credit Scores for Millions of Americans
Beginning July 1st, the big three credit reporting bureaus, Experian, Equifax, and Transunion, will no longer rely on certain public records, like civil judgments and tax liens, in calculating credit scores without first independently confirming the identity of the parties and obtaining court records every 90 days. This is just one of the many changes that are part of the National Consumer Assistance Plan, a collective effort by the credit bureaus to improve the accuracy of credit data. The confirmation of public records could see as many as 12 million Americans instantly get a boost of as many as 20 points to their credit scores.
This announcement comes on the heels of a $60 million judgment against one of the bureaus, Transunion, for violations of the Fair Credit Reporting Act. The Consumer Financial Protection Bureau also announced earlier this year that it is exploring a rule that could allow for alternative data sources to contribute to consumer credit scores.