The three major credit reporting agencies – Equifax, Experian and TransUnion – are making significant changes to medical collection debt reporting. In an effort to help consumers who have struggled to pay unexpected medical bills, especially due to the pandemic, the agencies will remove nearly 70% of medical collection debt from consumer credit reports.
What does this mean for borrowers? Credit scores are one of the most important factors influencing your financial wellbeing and abilities. If you’ve seen your credit score hurt by medical collection debt or if your finances are affected by unforeseen medical expenses in the future, these significant credit reporting changes could keep your score safe from taking a hit.
Here are the details:
- Starting July 1, 2022, consumer credit reports will no longer include paid medical collection debt.
- Consumers will have more time to work with insurance and healthcare provides to address their medical debt before it’s reported on their credit file. Previously, unpaid medical debt would be reported after 6 months – that period has increased to one year.
- In 2023, the three credit reporting agencies will no longer include medical debt under $500 on credit reports.
Read more from the Equifax newsroom by clicking here.