Ready for a credit score change?

Interesting news from the lending world; your credit score could be going up thanks to changes by the Consumer Financial Protection Bureau (CFPB). Whether you are waiting for your score to improve to qualify for a loan, or if you are looking to take advantage of a little bit better rate when you leverage your money, this is good news. Here is some information from a local lender, Justin Coleman at Fairway Independent Mortgage.

As of April 16th all three credit bureaus have removed tax liens and judgements from credit files. This was in response done by the CFPB to rectify erroneous credit items that nearly 90% of Americans face under the system. Many borrowers will see a significant jump in their credit scores. As much as 50 points.

On the surface this seems to be a really good thing, especially for those that are challenged when it comes to paying taxes. If you had tax liens prior that prevented you from obtaining a mortgage, they will not show up on your credit. However, mortgagees have the ability to search public records without a credit file and they are doing just that. And that is also a good thing. If Lenders were not able to discover these items, the cost of credit would have to be increased to cover the risk – resulting in higher rates for all.

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