Welcome change coming to credit reports!
Medical collections can really decrease a client's credit score, but starting next month, once they have paid off the collection it will no longer be included on credit reports. Also...
- The time period before collections will show on the report increases from 6 months to 1 year.
- Unpaid medical collections under $500 will no longer be included in reports in 2023.
These changes could have a significant impact on increasing many consumers' credit scores and decreasing/removing the impact of medical collections. You and your clients can check if you have any medical collections on your reports at www.annualcreditreport.com for FREE!