Details on Changing Credit Reporting

Details on Changing Credit Reporting

credit card score

 

As a top mortgage company in Utah, we at Altius Mortgage and our partners at Mortgage Ogden are always abreast of big changes in or around the industry that might impact your ability to secure a mortgage loan. One such important change that’s taken place recently? An update to the way the three major credit bureaus (Experian, Equifax and TransUnion) track certain parts of credit reporting.

For those speaking with a mortgage lender like ours about getting a great home loan, credit score is a huge factor. It often determines whether you can qualify for certain mortgage types, and is a big determinant of the kinds of mortgage rates you can get as well. Let’s look at this new change, and whether it will affect your score.

Why and When?

After a Consumer Finance Protective Bureau study that revealed its necessity, the three major credit bureaus have enacted the following change: Tax liens on consumer credit reports will no longer be included, and will be removed from previous scoring.

The study from the CFPB revealed that many incorrect reporting complaints received over the last few years were in this area. This change was enacted on April 16, 2018 – some of the changes were actually made last summer, but this was the date by which all reports were properly adjusted. Data will be held to a generally higher standard, with refreshing taking place every 90 days.

Will Your Score Be Affected?

As we noted above, these changes have been taking place since the summer of 2017 – it’s possible you already saw an increase to your score since then if you have any tax liens in your credit history. If not, you should have seen it by mid-April. LexisNexis Risk Solutions estimates that only about 11 percent of all customers will see a change in their score based on these changes, but those who do see changes will see increases of up to 30 points.

For more on new changes to credit score and how they affect you, or to learn about any of our mortgage solutions, speak to the pros at Altius Mortgage today.