Medical Collection Relief Is Here!
This new rule follows two other changes made to medical collection credit reporting that were implemented in July 2022:
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The waiting period for unpaid medical debt to appear on consumer credit reports was extended to 12 months (was previously only a six-month requirement).
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Paid medical collections are no longer reported to credit (previously paid medical collections were reflected in credit reports).
What is the best way to find out if you have medical collections on your credit report?
You can check your credit reports for free HERE to make sure that paid medical debt no longer appears and that medical collections under $500 no longer appear. You can dispute any inaccuracies you find.
What might these changes mean for you if you are in the market for buying or refinancing a home?
Your credit scores may increase as medical collections under $500 drop from your credit report and/or when you pay off medical collections that will drop from your report.
What if you have a current loan in process and current medical collections under $500 on your credit report?
Contact Melanie Taliaferro to find out if your existing credit scores might increase with the implementation of this latest medical collection reporting rule.