The Credit Bureaus Are Removing Tax Liens From Credit Reports: Will Your Scores Increase,

It can be a bit mystifying to the average person when deciphering which information goes in their credit reports and which does not. One detrimental piece of information will soon be completely removed from all credit reports compiled by the three main credit bureaus, which could have a positive impact on your credit.

The data in question is tax liens, which can show up in the public records section of your credit reports. These are issued as part of a judgement against you on behalf of the government if you miss a tax payment. To learn why this information is being removed from credit reports, who it will impact and how their credit will change, keep reading.

Why are tax liens being removed from credit reports, This decision comes on the heels of a move last July by the credit reporting agencies to remove all civil judgments and nearly half of tax lien data from people’s credit reports. The reasoning behind these changes stems from research published by the Consumer Financial Protection Bureau that indicated incorrect identifying information (e.g., your name) can link tax liens to the wrong person.

Who does this impact and are their credit scores guaranteed to improve, Approximately 5.5 million credit reports are expected to be impacted by the move to erase tax liens. Data provided by LexisNexis Risk Solutions indicates that some people could see their credit scores improve by up to 30 points; however, that won’t be the case for everyone. Those with stronger credit are likely to see less of an impact than those with weaker credit.

Ultimately, as this is just one piece of the larger credit reporting puzzle, it’s not going to be a make-it-or-break-it for most people’s credit scores. That said, it’s overall a good thing that the credit reporting agencies are revising their standards, especially in light of how many credit reporting errors have plagued consumers over the years. If you aren’t sure whether this or any other information could be bringing down your credit scores, it’s a good idea to check your credit reports. Learn how by following our guide.

Your credit score of 750 is better than 52% of Canadian consumers. For information on the factors that affect your credit score, see the section “How to improve your credit score”. Below are the aspects of your credit profile and history that are important to your Equifax credit score. They are listed in order of impact to your score—the first has the largest impact, and the last has the least.

Ratio of satisfactory trades to total trades in last 24 months. Number of personal finance trades with high utilization in the last 3 months. Worst rating for installment trades in the last 12 months. Lenders consider many factors in addition to your score when making credit decisions. However, most lenders would consider you to be a very low risk. You may qualify for a variety of loan and credit offers at some of the lowest rates available.

You may be able to obtain high credit limits in your credit card. Many lenders may offer you their most attractive interest rates and offers. Many lenders may offer you special incentives and rewards that are geared to their most valuable customers. It is important to understand that your credit score is not the only factor that lenders evaluate when making credit decisions.

Different lenders set their own policies and tolerance for risk, and may consider other elements, such as your income, when analyzing your creditworthiness for a particular loan. Equifax makes no representations, warranties or guarantees regarding your Equifax Credit ScoreTM (“ECS”) and your ability to obtain credit or any other benefit. Your ECS may be only one of many items used by an Equifax customer to determine your eligibility for credit or any other benefit.

Equifax does not make, and is not responsible for decisions made by its customers. All customers are required to abide by applicable credit reporting and privacy laws when accessing and using credit information. Equifax and Equifax Credit ScoreTM are trademarks of Equifax Canada Inc. All rights reserved. Thank you for your help! You will not receive a reply. For enquiries, contact us.

Aching to own a home and aching over bad credit does not mean you have to ache over not owning a home. Bad credit will not ease the way, but becoming a homeowner is possible. Becoming a first-time homeowner is a possibility even if you have bad credit. Your undertaking will not be easy in an already difficult process, but you can do a number of things to get you into a home.