U.S. Credit Scores to Get a Boost
U.S. CREDIT SCORES TO GET A BOOST
The three major credit bureaus are relaxing some of their criteria, raising concerns from industry analysts.
Mortgage News Daily reports that Experian, Equifax, and TransUnion will soon begin omitting tax-lien and civil-judgment data from some Americans’ credit reports. FICO estimates that the move will improve about 12 million credit scores, most by less than 20 points. The decision appears to be a response to a recent Consumer Financial Protection Bureau report that called for improved public-data standards.
LexisNexis Risk Solutions, which supplies data to credit bureaus, told The Wall Street Journal that consumers with liens or judgements are twice as like to default on other debts. A credit-score expert explained to the paper that he thinks that removing such information will make some borrowers seem like a lesser risk to lenders than they actually are.