Medical Debts to be Removed from Consumer Credit ReportsThree of the nation's largest credit bureaus - Experian, Equifax, and Transunion - announced they will be removing nearly 70% of medical debt from consumer credit reports.
What does this mean?
Starting July 1st, paid medical collections will be removed from consumer credit reports. This decision comes after months of industry research to assist consumers who have faced unexpected medical bills.
Medical collections will also not appear on a credit report for one year, which is an extension from the previous 6-month grace period.
Additionally, collections under $500 will no longer be reported to the credit bureaus starting the first half of 2023.
How can this benefit you?
Medical debt, even after paid off, can remain on a person's credit report from up to seven years. This longer grace period allows consumers to negotiate their debt or work with insurance companies to pay it before it's reported to an individual's credit file.
Furthermore, consumers could potentially experience an increase in their credit score leading to home purchase eligibility.
Contact your trusted local lender to learn how these changes could positively impact you in the future!
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