Some medical debt will soon disappear from credit reports

A lot of factors contribute to your credit score, including debt from medical bills.But an upcoming change could affect your number.Right now, medical debt — even when it’s paid off — can remain on your credit report for up to seven years. That’s something that will ding your credit score.Starting Friday, there will be a new policy regarding how medical debt will be reported by the three major credit bureaus — Equifax, Experian and TransUnion.Medical debt negatively impacts the credit scores of millions of Americans. One in five Americans had a medical bill they could not pay at the time they received care.In 2021, 43 million credit reports listed medical debts in collection. Three things to knowHere’s what you should know about this medical debt change on July 1:All paid medical debt will be erased from credit reports.New medical debt won’t be included in credit reports until one year after the debt is given over to a collection agency.Beginning in 2023, credit reports will not include medical debt of less than $500.Watch the video above for the full story.

A lot of factors contribute to your credit score, including debt from medical bills.

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But an upcoming change could affect your number.

Right now, medical debt — even when it’s paid off — can remain on your credit report for up to seven years. That’s something that will ding your credit score.

Starting Friday, there will be a new policy regarding how medical debt will be reported by the three major credit bureaus — Equifax, Experian and TransUnion.

Medical debt negatively impacts the credit scores of millions of Americans.

One in five Americans had a medical bill they could not pay at the time they received care.

In 2021, 43 million credit reports listed medical debts in collection.

Three things to know

Here’s what you should know about this medical debt change on July 1:

  • All paid medical debt will be erased from credit reports.
  • New medical debt won’t be included in credit reports until one year after the debt is given over to a collection agency.
  • Beginning in 2023, credit reports will not include medical debt of less than $500.

Watch the video above for the full story.

Contributed by local news sources

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