Credit Reports: Changes in 2018

A big thank you is in order from Iowa consumers to the Legislature, Governor Kim Reynolds, and Attorney General Tom Miller for passage and enactment of Senate File 2177  . Beginning on July 1st you will no longer be charged fees to use a “freeze” on your credit report.

The Equifax Breach put many individuals in a pool of consumers whose personal information was compromised. Faced with potential misuse, one step to limit damage was freezing your credit report at the three credit reporting bureaus, but the cost was $30.  In passing the new law, Iowa government officials reasoned that consumers should not be forced to bear the cost when a reporting bureau is negligent.

The credit bureaus are also making other changes: what data they collect; how it is reported; and credit score calculations.

  • All public record information, except for bankruptcy, is being removed from files.
  • Reports on medically-related debts are held for six months before posting to allow for insurance closures.
  • Medical debt is given less weight compared to other consumer spending when calculating your credit score.
  • Rent data can now be included in your credit report; only positive reports will be accepted.
  • A series of auto or mortgage inquiries are treated as one event.
  • Paid collection accounts will be removed from reports.
  • Keeping a card open that is paid in full will not help your credit score if it isn’t used. A card that is not used in a 3-6 month time period is dropped from credit score calculations.

Checking your credit report for accuracy is a good habit to maintain. If you haven’t checked yours in the past 12 months, now would be a good day to start!

Joyce Lash

Joyce Lash is a Human Sciences Specialist in Family Finance who wants to keep you ahead of the curve on financial information.

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