New credit reporting rules have started to take effect. Because of these changes, about one in five Ohio consumers should see their credit scores jump by fall of 2017. This means that if you’ve never checked your credit score or credit reports, now is a good time to start. To take advantage of this rare credit opportunity, you need to:
- Make sure that the credit bureaus have followed through with their promises;
- Ohioans who get a credit score boost of 20 points or more should be aware of their new standings. If you find yourself in a higher credit tier, you may qualify for better interest rates on your car loan, mortgage, and credit cards. A higher credit score can also save you money on insurance premiums.
Why Ohio Consumers will See New Credit Reporting Rules Taking Effect
Most Ohio residents may not know that, back in 2015, the three major credit bureaus were sued by a group of state attorneys general. These attorneys general believed that credit report inaccuracies were harming millions of U.S. consumers. In response, TransUnion, Equifax, and Experian agreed to some major policy changes. These new credit reporting rules were to be implemented in phases, over the course of three years.
Here is a breakdown of the latest policy changes from the credit bureaus:
Tax Liens and Civil Judgments:
On credit reports, these items are seldom updated. Therefore, in some cases, these blemishes have had a damaging effect on consumer credit scores for far longer than is otherwise legal. Often, judgments were paid and tax liens were released, but credit reports weren’t altered to reflect these changes.
Also, the credit bureaus have often mixed up the files of people who share similar names. This has resulted in wrongful credit score drops for a lot of Ohioans. So starting in July of 2017, tax liens and civil judgments must be accompanied by a full name, address, Social Security number and/or date of birth. Otherwise, these items should disappear from consumer credit reports.
Doctors and hospitals adhere to no standard formula when it comes to reporting unpaid debts to collection agencies. Because of this, medical debts on credit reports are sometimes completely inaccurate. Providers record inaccurate amounts, and debts appear far more delinquent than they are in reality. In addition, insurance companies are slow to pay. So a lot of “delinquent” medical debts on credit reports are not actually late.
Beginning on September 15 of 2017, credit report items related to medical debt must be at least six months old, otherwise, they go away. Also, any company that reports medical debt to the credit bureaus will have to provide complete information. These debts must be accompanied by a full name, address, Social Security number, and date of birth.
How Impacted Ohioans should take Advantage of New Credit Reporting Rules
Ohio consumers with lower credit scores pay higher interest rates on loans, mortgages, and credit cards. They may also pay more for their homeowner’s and auto insurance policies. This is why you need to know if your credit score changes for the better with these new credit reporting rules.
You should check your credit reports and credit score right now and again in a few months. If there is a significant increase, you should start making phone calls. Contact your mortgage and car loan providers and see if you can refinance at a lower interest rate. Next, check with your insurance companies to find out whether or not you now qualify for a lower premium. Finally, call your credit card issuers and try to negotiate better terms.
While you’re checking over your credit reports, take this opportunity to look for other types of errors. A lot of mistakes on credit reports relate to tax liens, judgments, and medical debt. However, it’s highly possible for there to be other types of inaccuracies that can bring down your credit score.
If you do spot any errors, you don’t have to handle the disputing process on your own. Ohio residents can now get a FREE credit repair lawyer to deal with the credit bureaus on their behalf. Sure, you could pay a big-name, national law firm a high monthly fee for credit repair, but why would you? When you call the Law Offices of Gary D. Nitzkin, P.C., you pay NOTHING out of pocket – EVER.
The Free and Legal way to Get Better Credit
Don’t let errors on your credit reports bring your credit score down. At the Law Offices of Gary D. Nitzkin, P.C., we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? The law allows us to collect our fees and costs from the defendants in any successful action. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (216)358-0591 or sending him a message through our contact page.