Credit-reporting agencies make important changes that can affect those seeking financing

Source: Bigstock

The three largest credit-reporting agencies in the U.S. have agreed to change how they handle credit information as part of an agreement with New York’s attorney general, according to this Reuters report.

The changes could have an impact for REALTORS®’ clients who must undergo credit scrutiny as part of the process to get a mortgage.

The agencies, Equifax, Experion and TransUnion, agreed to delay noting medical debt on reports they generate for 180 days to allow for insurance payments. Medical debt will be removed from consumer’s reports once the bill is paid by insurance.

According to Reuters:

The agreement follows several efforts to make consumers more creditworthy. Last August, personal credit score provider FICO said it would leave out or discount medical debt from its scores, which would boost the credit record of many borrowers, while helping lenders to better assess risk.

 

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About Jon Broadbooks

Jon Broadbooks is Vice President/Communications for Illinois REALTORS®. He serves as editor of online and print content for the association’s communications including the Illinois REALTOR® magazine and e-newsletters. He conducts spokesperson training seminars and oversees website development for the Association.

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