Many people will notice that their credit score has increased. A change has been made to the law that requires all three credit bureaus to remove tax liens from people’s credit report. This means that many people can have a 30 point increase in their credit score. A credit score can range from 300 to 850. You have a good credit score if it is above 700. An credit score that is above 760 is considered excellent.
Credit reports and credit scores play an important role in everyone’s life. They will determine whether you are able to get a good interest rate on you credit card or loan. They will also determine whether you will get approved for a loan or credit card.
Last July, tax liens were removed from 50 percent of credit reports. The rest of the tax liens have been removed. It is estimated that 11 percent of people have a judgement or lien on their credit report. While this change can greatly boost credit score, it will not have an impact on most people.
A report done by the CFPB stated that only a small percentage of people had a significant boost in credit score after getting a tax lien removed. There may also be consequences or people whose credit score is not affected by this change. Lenders may start charging higher interest rates.