Your credit score could increase as much as 40 points this summer thanks to the implementation of new standards by the National Consumer Assistance Plan. As of July 1, the three major credit reporting agencies, Experian, Equifax, and TransUnion will be held to higher standards of data accuracy, which is expected to increase the scores of nearly 12 million Americans. Here’s how this affects home buyers:
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The new reform by the NCAP could potentially raise your credit score, thus increasing your likelihood of being approved for a home loan
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One factor that can influence your mortgage rate is your credit score, so a higher score may mean a better rate
A few more facts about the NCAP:
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Will exclude certain civil debts and tax liens from appearing on your credit report
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Creditors will be required to wait 180 days before reporting outstanding medical debt, giving insurance companies time to pay the balance
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In addition to one free credit report a year through http://www.annualcreditreport.com/, consumers will have access to additional educational information
These changes may help millions of Americans gain access to a variety of loans, insurance, etc. – but this is only one purpose of the reform. The main goal is to ensure accurate reporting so that both consumers and creditors can make wise lending and borrowing decisions. For soon-to-be home buyers, this is a big deal. To talk to a real estate professional, send us an email or give us a call.
