PITTSBURGH (KDKA) — Millions of Americans could see their credit scores getting a boost this year. It’s all thanks to major credit bureaus changing their standards on tax liens and civil judgments.
Transunion, Experian and Equifax are changing their standards starting July 1, 2017, after pressure from lawmakers and consumer advocates to lessen the chances of error on a person’s credit report.
The agencies will no longer include tax liens and civil judgments if those reports do not have at least three pieces of personal identifying information, including name, address and Social Security number.
“Credit is paramount to someone’s financial success nowadays,” said Stephen Tanzilli, Dean of Point Park University’s Rowland School of Business.
Tanzilli thinks there is no downside to the move.
“I think credit it so important nowadays. To make sure that you have the right identifying information is crucial,” said Tanzilli.
The agencies will also require court records to be checked at least every 90 days to get updates on liens and judgments. If there has not been a check, the information will be excluded from the person’s credit report.
“Particularly now, with identity theft and us all being so concerned about that, I just think it’s so crucial to check your credit report at least once, if not twice, a year so these types of errors can be corrected,” said Tanzilli.
According to Tanzilli, the change still allows lenders to easily spot risky borrowers.
“Even if these folks who will have these things removed from their credit reports did in fact have a lien or some other civil judgment, I really do believe that there are other things in their credit history that are going to hurt them,” said Tanzilli.
He believes the more people who can secure lending opportunities the better.
Under federal law, you are entitled to one free credit report from each of the reporting agencies every year.