Don’t get stuck with a medical collection on your credit report.
Credit can be a complicated topic, but there is one area in particular that many people overlook: medical collections. Have you or anyone in your family gone to the emergency room, had a baby, or had to get checked out for an injury? If so, you may be at risk for a medical collection on your credit report, even if you have great insurance and always pay your bills on time.
The good news is that the three major credit bureaus - TransUnion, Experian, and Equifax - have recently implemented new rules that will remove several billion dollars worth of medical debt from consumer credit reports. This means that you may be able to get certain medical collections removed from your credit report, but you need to know what to do.
One rule that has already started is that if you have paid a medical collection of $500 or less, it should be expunged from your credit report. This means that it should not appear on your report, so you should check your credit to make sure that it has been removed. If it hasn’t, you need to contact the credit bureaus to find out why and report it so that you can get it fixed.
Another rule that will go into effect in March of 2023 is that any medical collection of $500 or less, whether it’s paid or not, will not show up on your credit report. This is great news for those who have struggled with medical collections in the past, as it will make it easier to keep up with payments and ensure that debts are not incorrectly reported.
It’s important to note that these new rules only apply to medical collections, not other types of debt. If you have other types of collections on your credit report, you will still need to address those separately.
If you want to learn more about your credit report and medical collections, or if you need help improving your credit score so that you can buy a home, reach out to us by phone or email. We can provide you with the information and resources you need to take control of your credit and financial future.