How Credit Reporting Changes Affect You 

Any top mortgage lender should always be abreast of big changes in the industry that might impact their customers, and at Mortgage Investors Group, we’re no exception. We’re a mortgage company that takes pride in identifying these trends before our competitors and allowing our clients to take full advantage.

We’ve been paying careful attention, then to recent changes in credit reporting by the major credit bureaus that determine your credit score. What are these changes, and how might they affect your score – and therefore your ability to secure home financing?

The Basics

Beginning April 16, 2018, the three major credit reporting bureaus have removed tax liens on consumer credit reports. These agencies – Experian, Equifax and TransUnion – will no longer use these liens at all.

This update comes in the wake of a study showing that most complaints received regarding credit scores are for incorrect reporting information. A big part of this change involves holding data to a much stricter detail standard, including refreshing information every 90 days to help prevent reporting issues.

How Might It Affect Your Score?

Changes to your score, which may have actually been happening since last summer, will involve the removal of most civil judgements and all tax liens. If you have those kinds of events in your history, you may already have seen an increase in your score – if not, you likely will soon. Just over 10 percent of consumers are expected to see a change here, with an average increase of about 30 points for those who are affected.

Credit and Financing a Home

All home loan programs come with minimum thresholds for credit score to achieve qualification. This means that if your score is too low, there are certain types of loans you simply will not qualify for. If your score has increased, however, such as through the changes we detailed above, you may find that your options have actually opened up.

For more on the recent credit changes, or to learn about any of our mortgage options, speak to the staff at Mortgage Investors Group today.