Millions of U.S. consumers saw their credit scores rise due to new credit reporting guidelines implemented by the national credit bureaus (Equifax, Experian, and Trans Union). The new guidelines prompted the credit bureaus to remove all non-loan collections, such as gym memberships and traffic tickets. Consumers who had at least one of these collection accounts deleted saw an average 11-point credit score increase. The credit bureaus implemented these new rules following settlements from lawsuits by several state attorneys general, including Nevada.
The report comes from Equifax, who sampled of millions of anonymous credit reports. Equifax’s report found that 8 million consumers had collections completely removed since the new credit reporting overhaul took effect. The percentage of debts in collections reflected on consumers’ credit profiles dropped from 12.5% in the second quarter of 2017 to 9.4% in the second quarter of 2018.
While this is great news for many consumers who had collections removed from their reports, this does not mean that consumers’ credit profiles will be free of errors. Nevada consumers should continue to check their credit reports using www.annualcreditreport.com to ensure the information is accurate and up-to-date. If you find any wrong information in your credit report, you should consult with a Las Vegas credit attorney to discuss your rights under federal law.