BREAKING NEWS: Medical Collections
The three nationwide credit reporting agencies – Equifax, Experian, and TransUnion announced some MAJOR changes on how and when medical collections can be reported.
Starting July 1st of this year, all paid medical collection debt will no longer be included on credit reports. This is a HUGE victory! Paid collections continually linger and negatively impact a credit report long after it’s been paid and resolved.
In addition, the credit bureaus are expanding the waiting period from 6 months to 1 year before an unpaid medical collection can be placed on a credit report. This means you will have more time to work with your insurance company or healthcare providers to find a solution before it is reported on your credit report.
Also beginning in 2023, the credit bureaus will no longer include medical collection debt under $500 on credit reports. I talk to so many customers with minor medical debt that can’t qualify for a loan due to the minor medical debt affecting their credit scores.
These joint measures will remove nearly 70% of medical collection debt from credit reports. This change will help so many people, especially those looking to buy real estate.
Starting July 1st those who are stuck renting because of unforeseen medical debt that is beyond someone’s ability to control will now be in a much better position to purchase a home.
If you’ve experienced this or you know anyone who has been through a tough time medically and haven’t been able to purchase a home because of it, please introduce us.
