KANSAS CITY, Mo. -- Twelve-million Americans credit scores will go up this weekend.
The changes come after the Consumer Finance Protection Bureau said the credit bureaus weren’t doing enough to fix credit report errors. Now they will eliminate tax liens and civil disputes from credit reports.
“Your credit score actually affects a number of different things, everything from getting a loan, are you eligible to get a loan, but also the terms of the loan you are going to get," Adam Hoopes explained.
Estimates are the changes could boost people’s score as much as 20 points.
“Twenty points when you are on the cusp of trying to get a loan can mean the difference between yes and no, but it can also mean the difference of the interest rate that they will give you the loan," Hoopes said.
While many see the changes as a positive, it’s likely only to raise the scores of about seven-percent of Americans. It’s still unclear the effect it will have on everyone else.
“The other school of thought is it is going to be a dilusion of all the scores, so the other 93 percent who don’t have these items affecting their scores aren’t going to go up and they are going to look lower in relative nature to these people, what I would say is probably somewhere in the middle," said Hoopes.