More than 5.5 million liens will be removed from consumers’ credit reports, increasing the chances they will get new loans from banks.
The three big credit-reporting firms – TransUnion, Equifax and Experian – have decided to remove tax liens from credit reports and to stop adding new tax lien information. The changes could go into effect as soon as April 2018.
For consumers, the change means that a negative event that could have held them back from getting approved for financing will be wiped off their credit reports. That could increase their credit score and make them look more creditworthy to lenders.
Lenders who want to keep tabs on such liens and other judgments will need to take the extra step of finding a company that will sell them that information or go through public records themselves.
(Note buyers will be faced with the same options as conventional lenders.)
Source: AnnaMaria Andriotis, Wall Street Journal, March 23, 2018.
