Credit seems to be complicated, as it tends to work against us more than it works for our benefit. Following a recent push to enhance the system, the three major credit bureaus, Equifax, Experian, and TransUnion, have decided to make a change that will be helpful to 12 million consumers in the United States.
According to the Consumer Data Industry Association, the major three bureaus are going to change their standards for reporting civil judgment data and the tax lien. Meaning that if the data doesn’t contain a complete list including the person’s name, date of birth, address, or social security number, it won’t be included. Moreover, the MarketWatch claims that most judgments and liens don’t contain complete information.
The change will occur around July 1st. regarding that paid tax liens stay on a consumer’s report for 7 years. While bankers argue this is a bad decision because it will be harder for them to judge creditworthiness in order to provide loans. But we don’t only use credit for debt, as it affects everything from your monthly bills to your ability to get an apartment.
If you have bad credit, landlords will check your credit and bill providers will legally be allowed to charge you a fee. Besides, a bad credit score can make your life difficult in many other ways.
This change will eventually result in boosting the credit scores of about 12 million American consumers.