A report from the Consumer Financial Protection Bureau earlier this year suggested that credit reporting agencies should improve the accuracy of their reports and update their records more often. Beginning July 1st, changes will be underway.
FICO, the entity that created the credit score system, estimates that customers could get an increase in their credit score this summer – an average bump of under 20 points for nearly 11 million people and up to 40 points for approximately 700,000 individuals. The data from FICO shows the average credit score across America hit an all-time high of 699 in April 2016. A “good” credit score is 700 to 749.
The change in regulations that are expected to take place in July will likely push the average American’s credit score north of 700. Three major credit agencies — Experian, Equifax and TransUnion — plan to drop certain negative information from credit reports, including most tax liens and civil judgments. They will also check accuracy of their consumer records, making the necessary changes. In addition, the new standard also requires updating public record information every 90 days.
This move in regulations will be very beneficial for those who need to improve their credit score following a bankruptcy and for those who need to establish good credit.
Staying on top of your personal credit report and examining it for errors at least once a year is still important, especially since there are changes that will be ongoing at the credit reporting bureaus in the weeks and months to come. A 2013 Federal Trade Commission study found that one in five people have an error on their credit reports, which can hurt your ability to get a loan. You can view your credit report from all three bureaus for FREE once annually at AnnualCreditReport.com.
Also, there are simple tips you can start doing today to help put your financial future first and increase your credit score. At Teel & Maroney, we now offer a FREE program, 7 Steps to a 720 Credit Score, for anyone who wishes to improve their credit score or establish good credit. To enroll today, visit 720jackson.com or give us a call at 731.424.3315.
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov