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07-13-2016, 10:54 AM #1
Rumored changes to credit reporting and scores
There are rumors circulating that there will be some big changes to what is included on your credit report, and these changes may have a big impact on how your score ends up being calculated.
The biggest change I've seen hinted at is eliminating all civil judgments and tax-lien data. I've also seen hints that reporting companies will introduce a 180-day waiting period before a medical bill account can be recorded on a credit report as past-due.
Not sure how I feel about these changes. I would hard to maintain a good credit score. These changes seem like credit score inflation. Will mine suddenly seem less valuable to lenders?
07-15-2016, 08:17 AM #2
If they continue to artificially inflate credit scores, and make it harder to collect on defaulted debt, they will probably end up making credit less available. Credit is based on reputation, and lenders will see more repetitional risk and collection risk from these reports.
The people who will be hurt most will be those with pretty good and improving credit.
And those on the bottom may be entirely shut out from non-predatory lending.
07-17-2016, 02:04 PM #3
If they found these items are prone to be incorrect, then including them denies more people the credit they need.
Anyway, I believe there are multiple varieties of credit scores available. Some will probably be based on older formulations, some on newer. Let the lenders pick and choose and figure out which work best for them.
07-18-2016, 07:26 AM #4
Wasn't it lowering of credit standards that got us into the housing crisis?
And don't we already have enough debt in the economy?
Unless these changes are being made to address consistent mis-reporting, I am not in favor. I'm not sure we need to make it easier for people to get into debt. We should be figuring out how to make it easier to save.
But I guess that is not the job of the credit industry.
07-20-2016, 09:54 AM #5
The whole credit reporting industry is a mess. Why do these private companies get to decide what goes and what does not? And why are they so unresponsive to actually making them accurate?
It may be time for lenders to go back to actually knowing their customers. Not relying on a score and hoping for the best.
07-22-2016, 04:57 PM #6
I can't tell if credit is easy to get or hard to get.
Everyone seems up to their eyeballs in debt. But we want to make it so it is always easier to take out more debt and not be bothered if you don't pay it back. This seems backwards to me.