El Pasoans could see a 20- to 40-point boost on credit scores starting July 1

Credit Score Gauge

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. A civil judgment is a debt you owe through the courts because of a lawsuit. 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.

El Pasoan Rene Ramirez admits his credit score could probably use a boost.

"It's bad, I know that for sure. I've rented an apartment,” Ramirez said. "I think it's a good idea! That makes me feel awesome. I might get a new car then!"

Under the changes, that information can also be taken out of credit reports if the public court records aren't checked every 90 days for updates.

"I think it's a wonderful thing,” said West El Paso resident Lisa Casillas. “I think there's so many people that had hard times in their lives, and sometimes they have to pay for it for the rest of their life. I think this would be great for them."

Even though these changes could help El Pasoans seem more creditworthy, we wondered if it might make real estate agents and lenders nervous. One local real estate agent, 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 new standards will take effect on July 1.

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