Will New Credit Reporting Rules from the Credit Bureaus Really Help Minnesota Consumers?

Minnesota consumers may or may not be aware of the fact that, back in 2015, the three major credit bureaus (TransUnion, Experian, and Equifax) agreed to make some serious policy changes. During the same year, the credit bureaus launched what they call the National Consumer Assistance Plan (NCAP). The number one purpose of the plan being to make credit reports more accurate. Since 2015, gradual changes to credit reporting policies have been implemented, and the NCAP is expected to be completed by March of 2018.

The most significant changes to credit reporting policies brought on by the NCAP went into effect on July 1, 2017. These removed most civil judgments from credit reports, as well as about half of all tax liens. This means that a lot of Minnesota consumers will see their credit scores jump by 15-40 points. For lucky Minnesotans who get the big credit score boost, this could be the beginning of long-term better credit. However, you’ll need to jump in and get to work if you want to fully take advantage of this opportunity.

Changes from the Credit Bureaus that will Positively Affect many Minnesota Consumers

Starting in July of 2017, civil judgments and tax liens must be accompanied by a person’s name, address, and either their Social Security number or date of birth to be listed on a credit report. According to speculations from FICO, around 12 million consumers nationwide will be affected by this policy change. Most of those affected will see a credit score increase of 20 points or less, but approximately 700,000 consumers will get a credit score boost of 40 points or more.

It should also be noted that, starting in mid-September of 2017, medical debt collection accounts may not be reported to the credit bureaus unless they are at least 180 days old. This allows more time for insurance company delays so that consumers aren’t penalized for bills that are supposed to be covered by their policies.

How Minnesota Consumers should take Advantage of the New Policies from the Credit Bureaus

These new credit reporting rules make mortgage lenders worry about falsely inflated credit scores. They feel that some Minnesota consumers who apply for home loans will appear less risky than they actually are. This, mortgage lenders feel, could lead to trouble if these home buyers are still prone to bad credit habits.

Minnesotans who get a credit boost from the new credit reporting policies should take this opportunity to turn things around. If your credit score increases by 20-40 points, think of this as a running start on the road to better credit. Keep track of due dates, and pay all of your bills on time. Pay off high credit card balances, and start using credit cards as credit building tools instead of debt building devices. Otherwise, if you fall back on bad habits, it won’t take much time for your credit score to drop. You should also pull your credit reports and look for more ways to improve your credit score. All three of your credit reports are available, for free every 12 months, on www.annualcreditreport.com.

The credit bureaus have announced that they will be pulling tax liens and civil judgments if the items aren’t complete. However, the credit bureaus often make mistakes. It’s possible that they will overlook an item that qualifies for deletion because it happens all the time. Luckily, Minnesota consumers who find errors on one or more of their credit reports can get a FREE credit repair lawyer to help through the entire disputing process.

The Free and Legal way to Get Better Credit

Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? The law allows us to collect our fees and costs from the defendants in any successful action.  This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (855) 956-2089 or sending him a message through our contact page.