Your credit score may go up by as much as 40 points this Saturday. On July 1, 2017 many tax liens, civil judgments and even medical debt will be removed from consumer credit files. Millions of Americans could benefit from this change. Why the change? It has been in the works for a long time, since the three credit bureaus had a class-action lawsuit brought against them by attorneys general in 31 states.
It is estimated that as many as half of all tax liens and most civil judgments will be expunged from consumer files. Tax liens and civil debts without sufficient personal identifying information including either a social security number or date of birth will be removed. About half of tax liens and most judgments do not have one of these two key criteria. This change could cause as many as 11 million credit reports to increase, some by as much as 20 to 40 points.
Credit expert, John Ulzheimer suggests pulling your credit report prior to July 1st and see if you have any tax liens or civil judgments in your file and then pull your credit again later in July and see whether the negative items are still there. If you are one of those impacted by the change, you may qualify for that loan that the bank turned down.