Millions of Americans will now see a cleaner bill of health on their credit reports, making it easier for many to get an apartment or apply for a loan.
Effective July 1, the three major credit reporting bureaus have removed medical debts that went into collection but were subsequently paid. In the past, these types of debts would remain on reports for as long as seven years. More changes are coming too. Beginning next year, credit reports will also be stripped of all unpaid medical debts up to $500. The two changes combined should scrub 70% of the approximately $88 billion in medical debt that currently shows up on the credit reports of 43 million Americans, according to the Consumer Financial Protection Bureau.
Listen to credit expert Tiffany Cross for insights on these changes and what it means to your clients and their adult children.