in this video I'm going to share with you three major changes to credit reports and credit scores that you must know about in 20125 now not knowing about these major changes can be detrimental to your credit score but on the flip side if you know about these changes you will know how to move accordingly with these new changes in the credit system now the first major change took effect January 7th 2025 this is when the cfpb have blocked all metal collections off of credit reports now prior to that in 2024 there was a blockage of medical collections that was under $500 now with this major blockage of medical collection the average American should see an increase in their credit score by 20 points on average because one out of three Americans have a medical collection debt now with them passing this rule January 7th 2025 the downside of that it takes six days for it to be finalized as a permanent ruling and for it to be in effect so that will be around the beginning of April but with the new Trump Administration putting a pause on the cfpb we must watch to see if they will roll back that ruling and if that ruling is rolled back in that 60 days then we can see these medical collections coming back on your Credit Report or just remaining there so you want to keep an eye out for that change that is expected in the next 60 days now also what you need to know that when it comes down to collections on the consumer side from credit cards or different phone for your sale or leases those things will remain with those consumer collections but if you need help removing this I have one of my users Greg that was a ble to remove his collection within the first 12 days of joining the elite credit system with my AI software and coaching so there is still ways and options that you can take to remove those consumer debts now the issue with the Trump Administration and the cfpb lies in with the banks and also with the tech industry AKA Elon Musk now both of these sides it can be a positive or A negative flip and let me explain why if you don't know when you look at Elon Musk and his Origins to his wealth started with PayPal he was a co-founder now at that time when he started it it was known as x.com and now you know that he owns X which is forly known as Twitter and what the issue with Elon Musk and fintex with the cfbb it was recently ruled on two tech companies that they will be oversight of these payment type of processors like cash app and those that are making payments Elon Musk wanted to turn Twitter and which is now X to a payment processor just like he did with PayPal and so with all those users they could have like apple wallets that we will see and U buying like with Apple pay but this would be a x sty type of payment processing now with apple and some of these varieties of banking and lending it has been positive for those who have troubled credit so for instance those that can get the PayPal credit card or vimo credit card because these are alternative lenders this gives an opportunity where you can get credit cards with lower credit scores just like The Petal credit card or Tuma that had a credit card and credit AI so when it comes down to fintech companies they unlike the big Banks can actually look at your income versus your credit history to give you credit cards in lending and so for those who don't have the options to go to big banks these alternative options canot only give them some kind of access to funding but also help them build their credit reports because many of these will report to the credit reporting agencies now the issue with the cfpv they still want to make sure that there are steps in place for Consumer privacy and if they have late payments some kind of way that there's a dispute process where the consumer can be protected and Hur so both of these sides do have valid points because to much regulation will shut down lending but we still need these Watchdogs like the CF PB because if you had an issue with big Banks or with your credit report you could put in a complaint there now the cfpb recently bought lawsuits against Experian and Equifax on the way they were not handling and fully investigating disputes and also they went after their banking institutions for charging hdden junk fees against consumers and just as I mentioned Elon mus and other fintech companies giving alternative financing and lending for those with subprime credit to help build their credit score moves me to my second big change for 2025 and this article is rolling out the announcement that you have Buy Here Pay Here accounts like a firm is now looking to report to your credit reports now with this this can go both ways also because these accounts for many people who cannot qualify for credit you'll see even with Airline tickets now you can use a firm to actually make payments over time for those Airline accounts and you can use this with other shopping so with a firm now reporting these payments a lot of people have these accounts and have been paying timely and that can be positive payment history on your credit reports so that is excellent news but the downside to that is if you are not making payments on time for those type of accounts you know it may reflect negatively on your credit reports and you want to make sure you don't let those accounts go into default if they're now looking to report to the major credit bureaus another big thing with these kind of accounts that people don't think about it's like a ghost account so even if you have good credit and you want to use those accounts not to show up on your credit report so you can qualify for larger loans and then lenders don't even know those accounts exist so it give you another form of lending that is not shown in off the books so that can help you qualify for more now with these accounts now showing on your credit reports that can decrease now what you can qualify for a loan a car or even a home because now those debts are showing up on your credit report to reduce what you can qualify to lend for and just like the changes with the Buy Here Pay he credit reporting status there's been the third big major change and that was in the mortgage industry with Fanny May and Freddy Mack announcing that in 2025 they're going to use alternative credit score to qualify you for mortgages now with that announcement that they made in 2024 that would have enable home buyers to be able to get more qualification for homes now with that government program that is what they're designed for and what they were going to just look at was your Vantage score 4.0 and FICA score 10t those two models allow for rent reporting accounts and other alternative accounts like utility bills to count towards your payment history when those other old scoring models do not take that in account and so that way by using the Vantage score 4.0 that is like your credit karma score and lot of those scores that Vantage you will see your credit score a lot higher so that can leverage to more approvals and with the FICO 10t the only downside with that that T is for trending data so they would have been looking at actual balances carried on credit cards on the past 24 months so if you're constantly carrying those balances that could have counted against you so this did have a double-edged SW but now that program is on pause and the reasons why they found Mass corruption recently with multifam lending accounts and these multif family complexes were actually having diverse types of misinformation and causing a big credit risk when it came to those institutions so now that program is on pause and now they're going back to only looking at those older scoring models and so with those older scoring models being a classic B A score two four and five then that is going to be a lot of times a lower score for a lot of people if you needed those kind of rental payment accounts and alternative accounts to help increase your credit score but the positive side of that is you don't have that trending data feature so with those credit card balance is with those older models at least if you pay off your credit cards or pay them down in a 30-day window once those balances update you could see your score with those older models raise up really quickly instead of the FICA 10t they're looking at debts that you were carrying for 24 months so the whole thing is with that 10t if you paid down your credit card even totally off it still wouldn't help you as much because they're going to look at the time you were actually carrying those balances and if you weren't paying it consistently going down that would account against you so this can be positive and negative depending on what side that you stand on so those are the major changes to the credit scoring models this year for 2025 so if you have any question or comments leave it in the comment section but if you have more detailed questions for me you can go to my website and all your questions go directly to my cell phone I hope to see you guys in the next video stay tuned