Have you checked your credit scores recently? If you haven’t, it’s time you did because very soon it is going to change for the better.
It has been found that the FICO (Fair Isaac Corporation) score of the average American stands at 695. Different companies have different scoring methods; the difference in points from various sources is minor and almost negligible.
Your credit report is not only important to procure a loan or get a new credit card but it is the key to your financial well-being too. The score comes in handy when you are looking to rent an apartment, condo or a house. Thinking of ways to increase their income many also look for making cash using the Quantum code. When you apply for a job, the prospective employers will check your credit scores before they hire you. Sometimes even utility services wish to know your credit scores before they offer their services.
July 1 the D-day
So you see how important your credit scores are and how practically every aspect of your life is connected to them. That is why you will be pleased to know that your FICO scores will see a boost on the first of July this year.
According to the Wall Street Journal, three of the major credit bureaus – Equifax, Experian, and TransUnion want to do away with the negative factors like:
- Tax liens
- Legal claims on unpaid taxes
- Civil judgments wherein you ended up clearing debts incurred by someone else.
What was the need for this step?
It has been found that the information on credit reports in certain cases is inaccurate; if the information is negative it will harm the prospects of the individual to get a loan or get any form of credit leading to personal and professional setbacks.
According to the Federal Trade Commission, almost one in five individuals filed a petition against wrong information in their credit reports.
Looking at the several scores of disputes each year, the above firms decided to do away with the shortcomings by removing incomplete data pertaining to address, social security number, DOB, and even names. These changes will come into effect to existing data reports as well as new credit reports.
Who will benefit?
These changes are beneficial to those who don’t have good credit scores by making them appear more creditworthy. Of course, lenders are worried that they might not be able to access a borrower’s worth and they might have to deal with defaulters too.
These changes may boost the overall economy too as more individuals will turn to availing loans to meet their various needs.
How will it help you financially?
Not everyone has the same credit score; the diverse nature of the American population is one of the main reasons for this disparity in scores. Hence, under the present a circumstances, a score boost of 40 will be significant for those availing a loan or applying for a new credit card or taking a house on rent. An estimated 12 million US citizens will be benefited by these changes.
Are you one of them? Get your credit scores checked today.