What's New With Credit Reports?

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Mar 14, 2017
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Credit Reports, Credit Scores, Policy, Research, Current Events, Video Resource

Here are a few new developments that we are tracking:

  • Consumers are about to benefit from changes afoot with credit reports (From WSJ [subscription] with hat tip to NGPF Team member, Sonia):

Many tax liens and civil judgments soon will be taken off people’s credit reports, the latest move to omit negative information from the powerful financial scorecards.

The decision by the three major credit-reporting firms— Equifax Inc., Experian PLC and TransUnion—could help boost credit scores for millions of U.S. consumers, but could pose risks for lenders. The reports and scores often help decide how much consumers can borrow for a new house or car as well as determine their credit-card spending limit.

Here’s the impact of this change summarized in a nice infographic: BF-AP011_CREDIT_9U_20170313114806

  • What complaints do consumers have with credit reports? According to the January 2017 monthly complaint report compiled by the CFPB…

The most common issue raised by consumers concerns inaccurate information in credit reports, constituting 76 percent of complaints about credit reports. Other issues raised by consumers include problems with: investigations (9 percent); obtaining a report or score (7 percent); the use of a credit report (4 percent); and credit monitoring or identity protection (4 percent).”

  • Thanks to Brian Page pointing out this link to an NBC News video describing an alternative credit scoring method that doesn’t require taking on debt.

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Looking to make your credit score lesson engaging? Check out our popular credit score activities (one of our most popular blog posts!)

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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