Credit Reports to Exclude Certain Negative Information

Friday, April 21, 2017

As we discussed in previous blogs, one of the biggest complaint categories to the CFPB remains inaccurate information on credit reports. Under significant pressure, the credit reporting agencies are putting the burden of proof on the people and companies submitting negative information. As of July 1, Equifax, Experian and TransUnion will remove and exclude certain negative information from credit reports. Tax liens and civil debts will no longer be reported on credit reports if the negative information does not include a customer's name, address and Social Security Number or date of birth and many liens and most judgments don’t include all three or four.

Tax liens and civil debts can have a meaningful and negative impact on your credit score. According to FICO, its presence on a credit report is "quite serious." Various credit score simulators demonstrate that a tax lien could take as many as 100 points off your score, making it difficult to obtain credit or expensive if you do. So, If you have incomplete tax lien or civil debt records on your credit report, the removal should have a meaningful positive impact on your score and you should check your score for the positive change after July 1.

For more information on how a credit score is computed and other credit basics, visit http://www.myfico.com/credit-education/credit-payment-history/.


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