Important Announcement for Potential Homeowners
Changes to medical debt reporting may drastically improve your credit score
The three major credit bureaus recently announced that nearly 70% of medical debt will be removed from consumer credit reports by July 1. Today we’re going to talk about how that change affects homebuyers and sellers.
"Credit is very important to obtaining housing, employment, and more."
Equifax, Experian, and TransUnion have also announced that they will extend the time before unpaid medical collection debt is reported on a consumer’s file from six months to one year. The extra time can give people an opportunity to work with their health care providers to settle disputes or work out payment plans before the debt is included in a credit report.
Also, starting in 2023, the credit bureaus will no longer include medical collection debt under $500 on credit reports. Experts agree that, unlike most expenses, medical expenses arrive unexpectedly and can send your family into a financial crisis. The situation worsens as medical bills go unpaid, debts are reported to bureaus, and credit scores are hurt. Credit is very important to obtaining employment, housing, and other financial products.
This change could boost your credit score tremendously if you have some lingering medical debt. If you’d like to see what we can accomplish or have any questions about this topic, don’t hesitate to reach out via phone or email today. We would love to hear from you.