Have you noticed a big rise in your credit scores recently, it’s most likely because of last month’s removal of tax liens from credit reports, and it also means that it’s an ideal time to get a loan.
On April 16, TransUnion, Experian, and Equifax all removed tax liens from their consumer credit reports. Until now consumers facing tax liens have had their credit scores dragged down considerably.
The Consumer Financial Protection Bureau’s credit study recently found issues with credit reporting, and recommended changes to help consumers. This led to removal of leans from the credit report, the number one issue reported by customers according to the CFPBB.
Last July’s removal of 96% of civil judgments and 50% of tax liens has been followed with the removal of the last 50% of liens. This affects about 5.5 million records, according to American Banker.
LexisNexis predicts that 11% of the population will be affected and have their credit score increased by as much as 30 points.
Credit scores impact interest rates. If you have tax liens and or judgments on your credit report in the past this is great news to you.
Let’s review your credit score today to see if we can reduce your monthly mortgage payments.
These new rules might not be good news for everyone however. Without this lien information, lenders will have trouble attempting to differentiate between trustworthy and untrustworthy borrowers, and we are likely to see them forced to raise their interest rates across the board sometime soon.