Great News For Your Credit Score

Dated: 03/30/2017

Views: 148


Many Borrowers May See a Credit Score Increase

March 27, 2017 6:50 pm

Credit scoringAccording to a recent article from The Washington Post, as of July 1, 2017, the three major credit bureaus, Equifax, Experian and TransUnion, will stop using civil judgment and tax lien information to determine credit scores. Civil judgment is debt owed to the government by someone who has lost a legal dispute, usually involving monetary damages. A tax lien is imposed on a property when the owner neglects to pay taxes on it. Both of these things negatively impact credit scores, causing a potential increase in many credit scores once their information is no longer used.

VantageScore Solutions conducted a study that estimated 8 percent of consumers would see an average 10-points increase on their credit score once the change is made. While this may be good news for borrowers, many mortgage lenders are concerned that the elimination of these factors will limit their evaluation of applicants. Tim Coyle, senior director of real estate and mortgage for LexisNexis Risk Solutions, stated that borrowers who have a civil judgment or tax lien on their file are 5.5 times more likely to result in foreclosure than those who do not.

Consumer Data Industry Association, the bureaus’ national trade organization, stated that the changes are part of a “National Consumer Assistance Plan” following a 2016 settlement for credit reporting accuracy. Consumer Data Industry Association believes that the change will improve accuracy in consumer credit reports going forward.

To learn more about this upcoming change, click here.

If purchasing a new home or refinancing your current home is in your future plans, I would love to speak with you about your home buying options. Call me today to set up an appointment.


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Colorado Springs Real Estate professional -Christine Sullivan

Christine is a motivated realtor specializing in listings in the Colorado Front Range and new home buyers located in the following areas;Colorado SpringsMonument and surrounding areas. Christine Sullivan uses advanced internet marketing to insure your property gets maximum exposure and will give you a professional edge needed to navigate today's housing market. For help with buying or selling a property call 1-719 660-5801!

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Christine Sullivan

I arrived in Colorado Springs for a quick vacation in 1993 and within a few days I knew that this is where I belong! I transferred from the college I had just started attending in Orange County, CA an....

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