Your credit score soon may get boost from report changes
According to the article with the same title by Stacy Cowley published by the Bradenton Herald on June 27, 2017 the reason this may happen because next month the national credit reporting agencies will wipe out from their record two major sources of negative information about borrowers: tax liens and civil judgments.
This change is brought about because the three major credit reporting companies –Equifax, Experian and TransUnion– often report mistakes in consumer’s reports. In order to force these credit companies to improve their accuracy of their reports, the measure of requiring each record they include in their reports to include the subject’s name, address and either social security number of date of birth.
“About 7 percent of the 220 million people in the United States with credit reports will have a judgment or lien stripped from their files, according to an analysis by Fair Isaac, the company that supplies the formula that generates the credit scores known as FICO”, says Cowley.
The article mentions that the flip side of the change, is that some borrowers may now appear more creditworthy than they actually are. The FICO score only starts the conversation with your lender. What determines whether you are approved for a loan is your Debt– to– Income (DTI) ratio. Therefore, the only way to regain or enhance your creditworthiness is by getting out of debt!
Call us now at (844) 330-6813 to find out how we can help you realize the benefits of our federally regulated debt relief program.