NEW YORK – Consumers struggling with low credit scores may get a break in the near future without changing their spending habits.
According to the Consumer Data Industry Association, the primary credit-reporting agencies will wipe tax liens and some civil debts from their reports.
The modifications, which are reported to take effect in July 2017, may improve credit scores for millions across the country by excluding that negative information, FOX 31 reported.
A report by The Wall Street Journal outlines the plan. Equifax, Experian and TransUnion will implement the changes if that data don’t include a complete list of a person’s name, address, as well as a social security number or date of birth.
Many liens and most judgments don’t include all three or four.
This change will apply to new tax lien and civil-judgment data that are added to credit reports as well as existing data on the reports.
Roughly 12 million U.S. consumers, or about 6% of the total U.S. population that has credit scores, will see increases in their FICO score as a result of this change.