Have You Checked Your Credit Score Lately?

Have you checked your credit score since the updates that took place this month?  

Remember, we reported back in April that beginning July 1st, big changes in the reporting standards would take place, and this could potentially affect your credit score!

Here is a summary of the changes:

  • First off, beginning July 1st, all civil judgement and public tax lien data that does not conform to the new reporting standards will be excluded by the three big credit bureaus.  In a nutshell, unless the data includes an individual’s name, address, and either a social security number or date of birth, it will be excluded from credit reports.  Further, this information must be physically verified every 90 days by making visits to courthouses.  Simply because of logistics and economics, the majority of civil judgments will likely be excluded after this date.  (If you have this type of information on your credit report, you may see a credit score increase of about 20 points.) Unfortunately, there is also a downside to this change.  Mortgage lenders may be forced to due more “due diligence,” and if so, prospective homeowners could face additional costs, red tape, and so forth when they are trying to get approved for financing.
  • Secondly, medical debts cannot be reported until 180 days after the date of delinquency.  This will protect you in the event that insurance payments are delayed due to verification issues, questions, etc.  And, once the bill is being paid or has been paid in full by insurance, any previously reported medical debt must be removed from credit reports.
  • And finally, authorized user data must include the full date of birth for any newly added user to all existing and new credit card accounts.

So, if you haven’t checked your score, now is the time to do so!

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