Strategic Consulting Services (http://www.strategiccs.org), a
After months of critical commentary from the
Under the current process, having an account go to collections has the same negative impact as a foreclosure or bankruptcy. Also under the current process, the credit score for a borrower who settles outstanding debt is treated the same as a borrower who refuses to repay the debt. Now with the change, borrowers have an incentive to settle the debt, as their efforts could l be rewarded with an increase in their credit score. While the change may sound common sense, it is a major victory for consumer advocates and the pocketbook of average Americans. Simply repaying unpaid debt could lift a credit score by 25 points, which means better interest rates that could translate to a homeowner savings of thousands or tens-of-thousands of dollars annually.
"This move will make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores," said
Additionally, as the cost of medical care has grown, so has health care debt or an inability to pay medical debt. Even with insurance, more than 20 percent of Americans aged 19 to 46 will struggle to pay medical bills this year, according to
"Despite the large reforms to government financial oversight and banking laws, this relatively small change will have a big impact on credit scores for the average American. The change helps banks lend more money without increasing their risk; while it also helps consumers qualify for better loans and suffer less consequence when they have hard times. Americans will be rewarded financially by doing the right thing," says
About Strategic Consulting Services
Strategic Consulting Services is a financial services firm with teams specialized in Debt Management, Mortgages and Business Services. With a comprehensive client-focused approach, the Company provides assessments looking beyond immediate financial issues to help clients build greater financial strength with smart habits and choices. Since 2007, Strategic Consulting Services has helped individuals and small businesses create savings plans, reduce debt, and make wiser spending choices. For more information visit http://www.strategiccs.org.
Read the full story at http://www.prweb.com/releases/2014/CreditScore/prweb12136241.htm
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