Most Credit Scores Rose After Reporting Changes; Some Fell

Posted To: MND NewsWireIn the last half of 2017 the three credit bureaus, Equifax, TransUnion, and Experian, agreed to change the way they handle collection accounts. These accounts represent a wide variety of debt – unpaid gym memberships, unpaid traffic tickets, delinquent rent, even unreturned library books. However unpaid medical bills account for about 52 percent of those debts. Another 23 percent are utility bills, and about 6 percent are debts that have defaulted and been sold to third party collection firms. About 40 percent of consumers with a credit report have had a debt in collections on their record at some point. The New York Federal Reserve’s Liberty Street Economics group says that collection accounts become more prevalent during the Great Recession , but since there has been a declining trend showing…(read more)Forward this article via email:¬†¬†Send a copy of this story to someone you know that may want to read it.

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Michael Ayoub, Author NMLS ID 6631