Credit Reports to Exclude Certain Negative Information, Boosting FICO Scores

Changes could improve credit scores for millions of consumers, may pose risks for lenders

Good news for consumers: several types of negative information will soon be removed from credit reports. WSJ’s AnnaMaria Andriotis explains on Lunch Break with Tanya Rivero. Photo: Reuters

By AnnaMaria Andriotis

Updated March 12, 2017Many tax liens and civil judgments soon will be taken off people’s credit reports, the latest move to omit negative information from the powerful financial scorecards.

The decision by the three major credit-reporting firms— Equifax Inc. Experian PLC and TransUnion —could help boost credit scores for millions of U.S. consumers, but could pose risks for lenders. The reports and scores often help decide how much consumers can borrow for a new house or car as well as determine their credit-card spending limit.

The unusual move by the influential firms comes partially in response to regulatory concerns. The three reporting bureaus rarely tinker with the information that goes on credit reports and that lenders consult to gauge consumers’ ability and willingness to pay back debts.

Read the full article here.

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