If you have tax liens civil judgements or no credit at all, July 1 could be a big day for you.

Credit scores for millions of Americans may soon increase due to two major changes in credit scoring.

Starting July 1, the three major credit agencies — Experian, Equifax and TransUnion — are dropping certain negative information from credit reports, including tax liens and civil judgments.

This forthcoming change comes after FICO’s announcement last year that it has begun using wireless and cable bill payment history, along with utilities payments and background checks, to determine credit scores. The FICO XD aimed at individuals without a credit history and will also run from 300 to 850.

Tax liens and common obligations can have an important and negative effect on your FICO assessment. As indicated by FICO, in spite of the fact that the effect of a tax lien reduces after some time, its nearness on a credit report is “very serious.” Various FICO score simulations show that a tax lien could take upwards of 100 points off your score, making it hard to acquire credit or costly in the event that you do.

In the event that you have a tax lien or common obligation records on your credit report, the removal ought to have an important positive effect on your score. The change should occur on July 1 2017, and you ought to see a quick lift. You can track your VantageScore on free sites/apps like CreditKarma.

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