Credit bureaus changing how they assess medical debt

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Credit bureaus changing how they assess medical debt
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TRANSCRIPT: As a result of a settlement with the state of New York, credit bureaus are changing how they do things all over the country and this is good news for you.

Do you know one of the things that blows your credit report apart, ruins your credit score, may in fact cost you a job you want, make it so you can’t get credit for buying a car or a home or whatever is medical debt that shows up  on your report. A lot of times you may even have insurance, you don’t know that there’s a bill out there, and it ruins your credit for seven years.

Well under the new system that the credit bureaus have agreed to adopt, medical debt will not show negatively on your report until it’s been unpaid for 180 days. That gives you time for even a collector to call you and say, ‘hey how come you didn’t pay the bill for that lab test?’ and you can scurry pay the bill and it will never show on your credit. This is a huge change and a big benefit to half of all people, when the only negative on your report is a medical debt.

Full article: Credit Bureaus Are Changing How They Compile Your Credit Report
 

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Clark Howard About the author:
Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to put more money in your pocket, with advice you can trust. More about Clark
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