Will You Be Positively Affected by This Credit Initiative?

A credit initiative beginning in July could boost the credit score of about 12 million Americans.

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I’m happy to report that beginning in July, credit scores are expected to rise for about 12 million Americans, thanks to an initiative launched by our country’s three major credit agencies.

This reform, called the National Consumer Assistance Plan, was designed to create more accurate credit reports and an easier process for consumers to correct errors on their reports. Previously, unsuspecting consumers would receive hits to their credit because of non-payments by someone else with the same name. This was frustrating for many consumers who weren’t even aware of it until they went to sign a contract. Making this correction would take months.

Now, there are stricter guidelines in place like the need for a social security number, name, and birthday before a debtor can mark your score.

This is absolutely great news for any prospective homebuyers looking for a little credit score boost before buying a home. Your credit score plays a big part in the buying process, especially when you apply for a loan. Did you know that having a mortgage can actually help your credit score, too? Keeping your mortgage payments up to date shows that you can manage money responsibly, which boosts your score.

Another big positive in this initiative is that unpaid medical bills will no longer be reported on credit reports until after 180 days, which will give insurance enough time to be effective. Sometimes life hits you, and the possibility of credit consequences is the last thing you want to worry about after a medical emergency. This change should provide millions of people with some relief.

If you want to learn more about the National Consumer Assistance Plan, check out our recent post on credit report reform here.

If you or anyone you know wants to learn more about their credit score and how you could be affected, give us a call. We’d love to help!

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