05/25/2022
Could a change in medical debt reporting help you?
Here's something you don't hear every day! Credit scoring is changing to help consumers – specifically those with medical debt.
The three primary credit repositories (Equifax, Experian and TransUnion) have agreed to changes that will wipe approximately 70% of medical collection debt from consumers' credit files
As of July 1, 2022:
Medical collection debt will be removed from credit reports after it has been paid. Typically, debt sent to a collection agency remains on a report up to seven years.
Negative reporting for unpaid accounts will appear on reports only after 12 months have passed. This gives consumers extra time to finalize questions with providers and insurers before the debt affects their credit rating.
Medical collection accounts below $500 will not be included on reports at all.
If you or someone you care about has been denied credit or paid more due to a low credit score impacted by medical collection debt, it may be time to try again.
Please reach out with questions or to see if these changes may improve your credit scores. And if you know of anyone else who could benefit, please pass the information along or let me know. I'll be happy to help.
RSW Credit Repair
-Stephanie
