The Federal Reserve increased its key rate by another quarter of a point, recently. This increase brought the rate to the highest level in 15 years. The increase was made in an effort to stave off inflation by making borrowing more expensive. However, this fed rate increase will affect consumer’s credit card bills.
Tag: consumer credit report
Mark Your Calendars: Starting July 1, certain negative marks will vanish from credit reports
Starting July 1, many people with tax liens, civil judgments and certain medical debts will see a boost to their credit scores. The three largest credit bureaus- Experian, Equifax and TransUnion, will no longer report a tax lien or civil judgment on a consumer’s credit report if it does not include the person’s name, address and either their social security number or date of birth. Existing liens missing this information will also be expunged.
Consumer-friendly changes will also be made to the way medical debts are reported. According to the new rules, bureaus will not display medical collections until at least six months after the account became delinquent. They will also remove any existing medical collections that insurance companies have paid or are paying for. After the liens and judgments are expunged, some consumers can expect to see their credit score increase by as much as 40 points- enough to affect a loan approval or the terms. The leading scoring company, FICO, estimated that out of 200 million “scorable” consumers, roughly 12 million will have a lien or judgment disappear from their report.
Starting July 1, the credit bureaus also will check lien and judgment data every 90 days to make sure the information is still accurate. These changes come as credit bureaus have been put under pressure from regulators and state attorneys general to improve the accuracy of credit reporting. To confirm their data is correct, consumers should get a free copy of their credit report from each of the three bureaus once a year at www.annualcreditreport.com.
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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.