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Valued Contributor
Posts: 1,984
Registered: ‎05-05-2010
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Re: Credit Score Changes for 2017


cjane1 wrote:

Hi all,

 

I found this article On Yahoo finance today

 

 

         .As part of its National Consumer Assistance Plan (the result of a settlement brokered with 31 state attorneys general back in 2015), Equifax, Experian and TransUnion are planning to significantly reduce the amount of tax-lien and civil-judgment information found in consumer credit files.

Details have yet to be finalized, but "there will be less of that type of data in credit reports moving forward," Stuart K. Pratt, president and CEO of the Consumer Data Industry Association, a trade association that represents the credit bureaus, confirmed to Credit.com. Testing is currently underway and a final plan regarding the information is expected to be implemented in July 2017.

 

If you go on Yahoo finace there is a lot more on the info.



cjane1 wrote:

Hi all,

 

I found this article On Yahoo finance today

 

 

         .As part of its National Consumer Assistance Plan (the result of a settlement brokered with 31 state attorneys general back in 2015), Equifax, Experian and TransUnion are planning to significantly reduce the amount of tax-lien and civil-judgment information found in consumer credit files.

Details have yet to be finalized, but "there will be less of that type of data in credit reports moving forward," Stuart K. Pratt, president and CEO of the Consumer Data Industry Association, a trade association that represents the credit bureaus, confirmed to Credit.com. Testing is currently underway and a final plan regarding the information is expected to be implemented in July 2017.

 

If you go on Yahoo finace there is a lot more on the info.


I have been getting mixed messages on how CRA will handle tax liens (and Judgements.) They are not putting it in the "parking tickets"  and "fines" categories, and that chances are they will continue to report it on the CRA.

Valued Member
Posts: 35
Registered: ‎02-05-2015

Re: Credit Score Changes for 2017

Interesting thing happened with Equifax. I had dispute my judgement with all 3 CRAs. Both Transunion and Experian came back as deleted no questions asked but Equifax came back as verified about a week ago. I logged in to file a new dispute about something else and review my credit report and to my surprise my judgement has been deleted. So not sure why they verified on my dispute yet still deleted later. Not going to complain, now my judgement is off all 3 CRAs. Hopefully this works for others as well.

Fico 8 Scores as of 10/12/16: TU 637; EQ 621; EX 685


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Registered: ‎12-30-2011
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Re: Credit Score Changes for 2017

[ Edited ]

iv wrote:

TygerHawke wrote:

Found it

 

http://finance.yahoo.com/news/biggest-change-credit-reports-years-113026540.html


I have some trouble taking an article like this seriously... when they manage to quote VantageScore changes, and talk about how that impacts FHA/VA/Conventional mortgages...  With specific numbers in each case.  It is absolutely meaningless to talk about 33.1% of consumers with a VantageScore of 601-620 bumping to 620-640, and because of that, qualifying for a mortgage. Pure drivel.

 

While these changes will certainly improve both VantageScore and FICO scoring for some people, the discussion of specific absolute numbers in that article is nonsense.

 

Also, not sure how much of a positive impact this will have anyway.  For mortgages, liens/judgements will get dug up anyway, even if they don't directly impact scores.  For other loans, I just see this change boosting the business of the smaller CRAs, as lenders seek out the information removed from the big three. (NCAP is just EX/EQ/TU, right?)


Re: mortgages the score is the principal determination of rate for conventional and jumbo products, after that it's just modifications based on specific down payment and loan product.  PR search is seperate.

 

For reference I would've easily scored 40 points higher into the top mortgage bracket when I went through this process last year (and hit a 720 on a trimerge report); sadly this change in July 2017 likely doesn't help me much as my last lien falls off late 2017.  Vantage I think is much less sensitive to tax liens than FICO, or at least my own VS scores are in the 785-790 range (and was on TU before I had an oopsie there) whereas none of my FICO's are above a 730.  I'm not expecting to move huge on VS when my lien is airstruck, I should be able to get to at least a 780 on both EX and EQ on FICO 8 (and it would be 800+ if I didn't have this one year old mortgage lording over my installment utilization).

 

We get people who conflate VS with FICO anyway, admittedly this article doesn't help much but I suspect for some people the removal of tax liens would be a very big deal indeed.

 

My surprise at the article was 11% of the population has a public record?  Admittedly small sample, but for serious?

 

I guess that explains why I never get flack from UW and never had a denial (other than two flier CLI requests) even with my tax liens both current and historical.  Here I thought I was doing something right haha, nope, millions of other customers are in my same situation ergo it ain't a big deal as the banks aren't going to throw all of us out based on that.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, TU 4 742, EX 2 702, EQ 8 722, TU 8 757, EX 8 737 (5/13/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Valued Contributor
Posts: 1,984
Registered: ‎05-05-2010
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Re: Credit Score Changes for 2017


Revelate wrote:

iv wrote:

TygerHawke wrote:

Found it

 

http://finance.yahoo.com/news/biggest-change-credit-reports-years-113026540.html


I have some trouble taking an article like this seriously... when they manage to quote VantageScore changes, and talk about how that impacts FHA/VA/Conventional mortgages...  With specific numbers in each case.  It is absolutely meaningless to talk about 33.1% of consumers with a VantageScore of 601-620 bumping to 620-640, and because of that, qualifying for a mortgage. Pure drivel.

 

While these changes will certainly improve both VantageScore and FICO scoring for some people, the discussion of specific absolute numbers in that article is nonsense.

 

Also, not sure how much of a positive impact this will have anyway.  For mortgages, liens/judgements will get dug up anyway, even if they don't directly impact scores.  For other loans, I just see this change boosting the business of the smaller CRAs, as lenders seek out the information removed from the big three. (NCAP is just EX/EQ/TU, right?)


Re: mortgages the score is the principal determination of rate for conventional and jumbo products, after that it's just modifications based on specific down payment and loan product.  PR search is seperate.

 

For reference I would've easily scored 40 points higher into the top mortgage bracket when I went through this process last year (and hit a 720 on a trimerge report); sadly this change in July 2017 likely doesn't help me much as my last lien falls off late 2017.  Vantage I think is much less sensitive to tax liens than FICO, or at least my own VS scores are in the 785-790 range (and was on TU before I had an oopsie there) whereas none of my FICO's are above a 730.  I'm not expecting to move huge on VS when my lien is airstruck, I should be able to get to at least a 780 on both EX and EQ on FICO 8 (and it would be 800+ if I didn't have this one year old mortgage lording over my installment utilization).

 

We get people who conflate VS with FICO anyway, admittedly this article doesn't help much but I suspect for some people the removal of tax liens would be a very big deal indeed.

 

My surprise at the article was 11% of the population has a public record?  Admittedly small sample, but for serious?

 

I guess that explains why I never get flack from UW and never had a denial (other than two flier CLI requests) even with my tax liens both current and historical.  Here I thought I was doing something right haha, nope, millions of other customers are in my same situation ergo it ain't a big deal as the banks aren't going to throw all of us out based on that.


The Vantage Score study assumed the deletion of liens and judgements but acknowledged that its still undetermined how CRA would treat them.

 

 

Valued Contributor
Posts: 1,816
Registered: ‎10-10-2011
0

Re: Credit Bureaus to reduce number of Public Records reported.

Interesting...

It doesnt say "WHY" the change. Are all of a sudden people with tax liens and such less prone to default? I'm all for the change, I just dont understand the why and the why now. 


Current Scores 3/2016 Equifax 676 Transunion 697 Experian 648 Goal Scores: 720's accross the board. Gardening Goal: 3/2017
Established Contributor
Posts: 792
Registered: ‎05-05-2015
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Re: Credit Score Changes for 2017

Same results as  you, EX and TU deleted no problem.  EQ came back as verified.  So maybe I'll get lucky and it'll vanish in a couple of weeks for me too. 

Moderator
Posts: 16,963
Registered: ‎12-30-2011
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Re: Credit Score Changes for 2017

[ Edited ]

alottacards wrote:

Same results as  you, EX and TU deleted no problem.  EQ came back as verified.  So maybe I'll get lucky and it'll vanish in a couple of weeks for me too. 


Are you folks just throwing in flier disputes with each of the bureaus for judgements, did anyone do this with tax liens?

 

I'm seriously considering doing similar with my paid tax lien which is off in ~14 months: I don't "need" it but hell if the opportunity is there based on the fallout of this settlement...

 

I know EX verified it historically when I needed to get it released years ago and I haven't been able to re-dispute it as a result.  I should double-check that next time I get an EX report for giggles.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, TU 4 742, EX 2 702, EQ 8 722, TU 8 757, EX 8 737 (5/13/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Established Contributor
Posts: 792
Registered: ‎05-05-2015

Re: Credit Score Changes for 2017


Revelate wrote:

alottacards wrote:

Same results as  you, EX and TU deleted no problem.  EQ came back as verified.  So maybe I'll get lucky and it'll vanish in a couple of weeks for me too. 


Are you folks just throwing in flier disputes with each of the bureaus for judgements, did anyone do this with tax liens?

 

I'm seriously considering doing similar with my paid tax lien which is off in ~14 months: I don't "need" it but hell if the opportunity is there based on the fallout of this settlement...

 

I know EX verified it historically when I needed to get it released years ago and I haven't been able to re-dispute it as a result.  I should double-check that next time I get an EX report for giggles.


It was my only public record for me, (satisfied judgement) don't have any tax liens.      I disputed it citing "National Consumer Assistance Plan"  

 

give it a try, never know, it might work.  

Valued Contributor
Posts: 1,984
Registered: ‎05-05-2010

Re: Credit Score Changes for 2017


Revelate wrote:

alottacards wrote:

Same results as  you, EX and TU deleted no problem.  EQ came back as verified.  So maybe I'll get lucky and it'll vanish in a couple of weeks for me too. 


Are you folks just throwing in flier disputes with each of the bureaus for judgements, did anyone do this with tax liens?

 

I'm seriously considering doing similar with my paid tax lien which is off in ~14 months: I don't "need" it but hell if the opportunity is there based on the fallout of this settlement...

 

I know EX verified it historically when I needed to get it released years ago and I haven't been able to re-dispute it as a result.  I should double-check that next time I get an EX report for giggles.


Ive read that folks have been challenging tax liens and judgements with Experian, and they end up up deleting it.

Moderator
Posts: 16,963
Registered: ‎12-30-2011

Re: Credit Score Changes for 2017

Ah thanks for the replies!

 

I smell a test in the name of science approaching on Friday Smiley Happy.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, TU 4 742, EX 2 702, EQ 8 722, TU 8 757, EX 8 737 (5/13/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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