Have a Bad Credit Score? It Could Soon Get Better—but Is It Enough to Buy a Home?
Have a bad credit score that’s keeping you from buying a home? You’re in luck: In July, credit reports are undergoing a major cleanup that could help.
Your credit report and score, of course, are scrutinized by lenders since they reveal how well you’ve paid off past debts. The problem? A Federal Trade Commission study found that 1 in 4 people spots errors on the report. Two areas that are notorious for being inaccurate are tax liens and civil judgments.
Basically, a tax lien means you haven’t paid your taxes; a civil judgment means a court has determined that you owe someone money. Understandably, when these blemishes pop up on your report, they make lenders leery. However, according to Eric J. Ellman, senior vice president for public policy and legal affairs at the Consumer Data Industry Association, as much as half of tax lien data is inaccurate or incomplete, missing key info like your name, address, Social Security number, or date of birth. And experts say civil judgments aren’t much better. So you might be getting dinged for these, even if it’s a case of mistaken identity, or you paid them off long ago….Read More