People are often concerned with their credit scores, particularly when they are facing serious debt problems. All too often, credit scores are lowered not because of legitimate issues, but because of sloppiness or fraud. A new move by the country's three credit reporting agencies is designed to address this problem. As a result, your credit score could go up.
Stricter Requirements For Negative Information From Lenders
According to an article from Forbes, beginning July 1st, credit reporting agencies will now require that negative information regarding tax liens and civil debts include the customer's name, address and either Social Security number or date of birth.
You may be surprised to find that this was not already a requirement. Unfortunately, lenders frequently provide negative information that is incomplete, resulting in mistakes that can have a serious impact on a person's credit score. Now, if negative information is submitted incomplete, it will not be allowed to hurt a credit score.
Sometimes The Problem Is Not The Credit Score, But The Underlying Debt
If you are overwhelmed with debt and it is impacting your credit score, this new change may not have a huge impact. However, there are options available.
Bankruptcy is a trusted method for overcoming debt. Some people believe that bankruptcy will have a further negative effect on a credit score. In reality, filing bankruptcy resolves the problems that led to a low credit score and offers the opportunity to rebuild.
If you are interested in getting out of debt, you should discuss your situation with an experienced lawyer.