Credit Report Changes 2017: Why Your Credit Score May Go Up Soon

Some changes to your credit reports will come this year, and they may be for the best.

Credit Report

Three of the major credit score agencies are changing the way their business is conducted, or rather the manner in which they measure your credit. This is an important piece of information that can help you determine how much to pay for a vehicle, rent and other important everyday purposes.

FICO analysts noted that about 12 million customers will see an improved credit report this year as the standards for two pieces of negative information are changing: tax liens and civil judgments.

TransUnion, Experian and Equifax are the three agencies that are responding to pressure from lawmakers and consumer advocates to improve their policies and fix some errors that haunt the reports of consumers.

The three agencies are hoping to avoid a situation like in 2015, when it settled with customers from 31 states over errors. Now, fixing your credit score will be much easier.

“It’s a positive for consumers and, frankly, I think it’s a positive for lenders,” said Liz Weston, a certified financial planner and columnist for NerdWallet.

She added that credit scores will improve in a modest manner, and these people are creditworthy, but were judged the wrong way when helping them to determine what they are eligible for.

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