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El Pasoans could see a 20-40 point boost on credit scores

Credit score concept

A major change coming this summer could boost millions of Americans’ credit scores. The nation's three largest credit reporting agencies will soon exclude some negative reports from your credit score. This change could potentially increase the credit scores of 11 million people. That would mean some El Pasoans who did not qualify to buy a house or car before might now be eligible. The three major credit reporting agencies are changing their standards for two pieces of negative information: tax liens and civil judgments. You get a tax lien on your credit if you are delinquent on your tax payments.

Even though these changes could help El Pasoans seem more creditworthy, we wondered if it might make realtors and lenders nervous. One local realtor, Yolie Stanton, said that is not the case and the change is actually good. Stanton said this change could boost El Pasoans’ credit scores anywhere from 20 to 40 points. She also said this change comes as lawmakers pressure those credit reporting agencies to fix errors on consumers' reports.

"There was mistakes on credit reporting. Now the three credit reporting agencies have agreed to report more accurately,” Stanton said. “We would be able to help more people raise their credit scores and help them on their path to acquire a home."

The three agencies will remove any tax liens and civil judgments from your credit report if those reports don't include your name, address or Social Security number.

The new standards will take effect on July 1.

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