The three nationwide credit reporting agencies, Equifax, Experian and TransUnion, have announced they’re making changes in how medical debt is reported on a consumer’s credit report. The agencies could remove nearly 70% of medical debts from credit reports.
What’s changing?
The three credit reporting agencies have agreed to the following important changes to reporting medical collection accounts.
• Paid medical collection debt will no longer be included on consumer credit reports, as of July 1, 2022.
• The time period before unpaid medical collection debt will appear on a consumer’s report will be increased from six months to one year, also effective July 1, 2022. This change gives consumers more time to work with insurance and/or healthcare providers to address medical collection debt before it appears on credit reports.
• Medical debt collection accounts under at least $500 will no longer be included on consumer credit reports. This goes into effect the first half of 2023.
According to a Consumer Financial Protection Bureau report, around 43 million Americans have an estimated $88 billion in medical debt on their credit files. These significant changes to medical collection debt reporting will assist consumers faced with unexpected medical bills.
How to get your free credit report
Your credit report matters because it can affect things like auto loan and mortgage rates, credit card approvals, or even job applications. Reviewing your credit report regularly helps you catch mistakes or identity theft and ensures the information is correct and up to date.
For the time being, Equifax, Experian and Transunion are continuing to offer free weekly online credit reports. Visit AnnualCreditReport.com to get your free reports.
How to view your FICO Credit Score
You can view your FICO® Credit Score through Partner Colorado’s Mobile Banking App. Your FICO® Score is the most widely used credit score in lending decisions. It’s based solely on information in consumer credit files maintained at the credit reporting agencies. Understanding your FICO® Score can help you better understand your credit risk and manage your financial health.
Staying on top of your credit report and the upcoming changes to reporting medical collection accounts should help consumers achieve greater financial success.
