Credit Score Recent Trends, There have been some changes in the circumstances surrounding credit reports and scores. We would like to inform you about 4 credit-related updates. It will be easier to make a claim request when there is an error in your credit report, and you will be allowed a certain amount of spare time for medical expenses unlike payments such as mortgages, and recently credit card companies are crediting We’ll summarize that we’re starting to provide a mechanism for easy viewing of scores, and that alternative scores are being developed to replace traditional credit scores.
Correct the error in the report …
The credit score is a score that measures whether or not the person’s borrowed money will be returned properly. It is used as. Whether the score is good or bad, whether the card is available or not, whether the rental property can be rented or not, how much the interest on the loan will be, etc., will have a great impact on financial life. .. Whether we like it or not, information about our credits is always automatically collected. The three credit agencies sell this information to financial institutions and other companies that use scores, so they should have a great responsibility for the accuracy of that information, but in fact, the credit report There are statistics that one in five contains mistakes, so I was not proud of the accuracy.
What’s more, contacting a credit agency about a mistake or requesting it to be corrected can be a daunting and time-consuming task, and you can’t even get it investigated as you wish.
We are pleased to announce that the three credit agencies will improve their response to inquiries regarding mistakes in the report. Consumers say that they are not responsible for their credibility and do not respond promptly to mistakes pointed out by the person, even though they collect information about people without permission and sell it for business. From the standpoint of, it was an annoying method, but it seems that it will be scrutinized more rigorously by the government and consumer groups in the future. You will need to have a profession to investigate inquiries about mistakes, correct mistakes if necessary, or create a system to deal with inquiries properly. As consumers, we should still be able to check our credit reports regularly and make confident claims about mistakes, which is a welcome move for consumers.
Unpaid medical expenses are a little preferential
For medical accounts payable, we have set a waiting period of 180 days, after which it will be reflected in the credit report. Medical claims and payments often take a very long time because insurance companies are involved. It takes time to process medical insurance claims to the insurance company, to approve medical measures by the insurance company, to determine the insurance burden and personal burden, and to contact them. After that, it will take more time if you request changes or proofreading of the EOB (Explanation of Benefits) or the invoice from the hospital once you have received it. If the information goes to the collection agency (third-party collection agency) and the credit report is added to that while they are not yet cleaned up, the credit score will be negatively affected.
From now on, only the unpaid amount remaining after the 180-day waiting period will be reflected in the credit report. Also, even if it appears in the report, once the payment is completed and resolved, the entire description of the report will be deleted, that is, there will be no record of overdue.
With soaring medical costs, the advent of self-paying insurance, and the complexity of insurance, medical unpaid accounts for more than half of all delinquent charges, and 43 million Americans are said to be delinquent. .. There is also data that historical statistics show that medical delinquency itself is less correlated with consumers’ overall credit trends. In other words, billing and payment of medical expenses often takes time to resolve, even for those who make other payments properly. Billing for medical bills is complicated and confusing, and there are many mistakes . Don’t be afraid to have a negative impact on your credit score, and take the time to check your bills if necessary, and then make a convincing payment.
Have you checked it yet?
Last year, an agency called the Consumer Financial Protection Bureau (CFPB) launched an initiative to facilitate consumer credit score checking. As a result, many credit card companies now offer an easy way to view their credit scores through monthly statements and online sites. As I mentioned earlier, credit scores have a big impact on financial life, and credit scores are easier to obtain and more likely to be witnessed, raising consumer awareness and thus improving scores. It is assumed that you should take positive action for this.
Scores are already provided by over 12 major credit card issuers. If you have access to your credit card online account, you can now check your score online at any time. Is it already checked? If you haven’t already, try accessing your credit card account right away. You’ll find a link to check your credit score. Now you can check your score on a regular basis without having to use a paid online monitoring service. This is just a score, so it’s a good idea to use annualcreditreport.com once a year to check your entire credit report for mistakes.
Score without credit
Fair Isaac Corp, the developer of FICO scores, the most frequently used credit score, recently announced that it is developing and testing a new type of credit score. The current credit score is only calculated if you have at least one loan or credit card account and have a repayment history for a certain period of time . Whether you’re a young person who doesn’t have enough history, a foreigner who’s just starting to live in the United States, or a cash-basis person who doesn’t like using credit cards or borrowing loans, of course, “creditworthy” There are “trustworthy people”), and the aim is to save such people. The evaluation criteria for scoring are the payment history of utility charges such as cable TV, mobile phones, electricity, and gas, and the address change history (smaller is judged to be stable and better).
If you don’t have a credit score, this new score will help you build your traditional credit score as you build your credit history by creating credit cards and loans as needed and paying them back. This new score meets the needs of financial institutions who want to market their loans and credit card issuance to solid people who don’t have a credit score but are steadily paying utility bills, such as Fannie Mae and Freddie Mac. It seems that mortgage institutions such as are also considering the introduction of such a score model.
This new system is not considered to be an alternative to traditional credit scores, but rather a bridge as a precursor to it. Even if you do not have a credit score, such as those who have just arrived from Japan, it will be easier to receive loans and credit card issuance, but after that, the part that maintains and improves the conventional credit score will continue to be . I think it is still necessary.