Starting this summer, Medical Collections will start to be removed from millions of credit reports. The move will remove an estimated 70% of negative medical debt remarks, giving many a hopeful jump in credit scores!
Here are the details of the new changes effective July 1, 2022:
- Paid medical debt that was in collections will no longer be included on consumer credit reports.
- You’ll have more time before unpaid medical debt is reported on your credit report: Unpaid medical debt that is currently in collections for one year will be reported on credit reports. This is an increase from six months that was enacted in 2017.
- Starting in the first half of 2023, Equifax, Experian and TransUnion will no longer include medical debt in collections under $500 on credit reports.
Medical debt is a financial killer for many — not just the elderly or those with medical conditions. In a recent Healthcare.com survey, all living generations indicated their medical debt has harmed their credit scores, with millennials being the highest at 52%.
And while negative credit score remarks can create long-term financial consequences, medical debt creates a situation where immediate sacrifice is also needed. The same survey indicated one in four Gen Zers and Millennials with medical debt skipped rent or mortgage payments because of their debt. Being late on your mortgage payment can also harm your credit score.
If you have any Medical Collections on your credit report, contact us for a Free Credit Analysis and we’ll discuss the Medical Collection Removal Process and other ways to maximize your credit scores.
Go to www.EditMyCredit.net