How the Big 3 Credit Reporting Agency Changes Will Affect Consumers

Date March 11, 2015

The 3 credit reporting agencies – Experian, Equifax, and TransUnion – have made some recent changes that are actually in favor of the consumer.

Under the recent agreement, all 3 agencies will improve their dispute resolution process, which is largely automated, and instead use specially trained employees. The three companies will also establish a six-month waiting period before reporting medical debts on consumers’ credit reports, providing more time for consumers to resolve issues that might amount only to a delayed insurance payment or other disputes. The credit agencies will also remove medical debts from an individual’s report after the debt is paid by insurance.

All of these changes may ultimately affect your credit score in a positive way.

What is a credit score? 

Your credit score is a three-digit number generated by a mathematical algorithm using information in your credit report. It’s designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.

There are several credit-scoring models out there, but the most widely used is the FICO credit score. According to, the consumer website for the FICO score developer, “90 percent of all financial institutions in the U.S. use FICO scores in their decision-making process.” FICO scores range from 300 to 850, where a higher number indicates lower risk. Financial institutions use this score to decide whether or not to give you a loan, and to determine your interest rate. The higher your score, the better the interest rate on your loan.

For more information on the new Credit Reporting Agency changes, click here.

For information on Matadors Community Credit Union’s low-interest loans, click here.


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