ICFE eNEWS #17-26 - July 6th 2017
ICFE E-NEWS Consumer Alert What's Being Removed From My Credit Report?
By John L. Culhane, Jr. on January 5th, 2017
If you have a civil judgment or tax lien on your credit
report, we've got some good news for you: It might be gone come
That's when the three major credit bureaus -
TransUnion, Equifax and Experian - will start to require more
documentation for such public records. As a result, all existing
civil judgments as well as more than half of all tax liens will
be wiped from consumers' credit reports, according to the
bureaus. And the average person who's affected will see his or
her credit score rise by about 10 points.
credit-score increase associated with these changes is unlikely
to exceed 20 points, every piece of negative information that
falls off your credit reports is good for your credit score. So
we definitely recommend reviewing your credit reports on a
regular basis, both to confirm the removal of problematic public
records and to make sure no other mistakes wind up costing you
What's Being Removed From My Credit Report?
Everyone's on board for higher credit scores. But a lot of us
aren't up on the latest credit-industry lingo. And the terms
"civil judgment" and "tax lien" are hardly self-descriptive.
So here's a quick overview of the two types of records that
the credit bureaus are cracking down on:
• Having a Civil
Judgment on your credit report means you've lost a lawsuit and
the judge has ordered you to pay the debt for which you were
sued. This tells potential lenders that the government is first
in line for your disposable income, meaning less is left for
credit card and loan payments.
• A Tax Lien turns
physical property - usually a house or car - into collateral for
an unpaid tax obligation. It basically prevents you from selling
that property before paying the government what it's owed.
Both will be listed in the Public Records section of your
credit report. Your WalletHub Credit Analysis grades can also
quickly give you a sense of whether you have anything to worry
Will My Credit Score Improve?
You can monitor your
credit score for free on WalletHub to see if it improves.
WalletHub is the only site with free daily credit score updates.
So you'll know as soon as anything changes.
Free Credit Score
We can also learn a lot from some
research that VantageScore - one of the leading credit-score
companies - released about a year ago, examining what would
happen to credit scores if civil judgments and tax liens were
removed from consumers' credit reports entirely. The results
aren't perfectly applicable to the present situation, as tax
liens with the proper documentation will remain in real life.
But they do provide a pretty good sense of what to expect.
Here are the percentage chances of an individual's credit
increasing, in the absence of tax liens and civil judgments:
Credit Score Range Chance of Improvement
ICFE strongly recommends that you review your credit
reports from time to time in the coming months. For one thing,
you'll need to confirm the removal of civil judgments and tax
liens, or at least inquire about any that remain. In addition,
there are plenty of other credit-report errors to watch out for.
And catching them early will save you a lot of time, money and
You're entitled to a free copy of each of your major
credit reports once every 12 months from AnnualCreditReport.com
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Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by
the late Loren Dunton (creator of the Certified Financial Planner (CFP)
designation and founder of the College for Financial Planning in Denver, CO.)
The ICFE is dedicated to helping consumers of all ages to improve their spending
practices, increase savings and use credit more wisely.
The ICFE is an
award winning, nonprofit, consumer education organization that has helped
millions of people through its financial continuing education courses programs
and resources. In addition to eight Certification courses covering identity
theft, credit files, credit repair and credit scoring, among others, it also
publishes the Do-It-Yourself Credit File correction Guide, which is updated
annually. The ICFE has distributed over one million Credit/Debit Card Warning
Labels and Credit/Debit Card Sleeves world wide.
The ICFE is a partner
with the national Jump$tart Coalition for Financial Literacy and the California
Jump$tart chapter. The ICFE staff is also active with San Diego Saves and
Military Saves, both offshoots of America Saves.
The ICFE is also an
on-line help for consumers who spend too much. ICFE's spending help was featured
in PARADE Magazine in the Intelligence Report section. The money helps and tips
are from the ICFE's Money Instruction Book, our course in personal finance.
The ICFE helps consumers and students with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
how to teach children about money. Other ICFE services include: Ask Mr. G
library, a free eNews service, and an online resource center for students,
parents and educators, plus financial education learning tools in the ICFE Book