Medical debt changes hitting credit reports this summer
Paid medical collections are set to come off credit reports in July
Creditcards.com industry analyst Ted Rossman discusses paid medical collections to come off Americans’ credit reports starting July 1.
During an interview on "Mornings with Maria" credit card expert Ted Rossman said that the paid medical collections to come off American's credit reports starting July 1 will lift a lot of scores.
5 COMMON CREDIT CARD MISTAKES AND HOW TO AVOID THEM
New medical debt changes on credit report will "help" a lot of people, analyst Ted Rossman told FOX Business. (iStock / iStock)
TED ROSSMAN: This is actually going to help a lot of people because the CFPB says that 43 million Americans have $88 billion worth of medical debt on their credit reports, and soon about 70% of that is going to come off. So paid medical collections will come off starting in July, unpaid medical collections that are less than a year old. And then next year, we're going to see these unpaid collections under $500, unpaid medical collections under $500 bucks coming off. This will lift a lot of scores. If medical debt is the only thing dragging you down. This could help you by 100 points or more. And it really reflects the fact that one insurance is confusing, so this may not actually be your fault, but also medical debt has not proven to be as predictive as other things. It's often a one time crisis, maybe not as reflective of your credit risk as your monthly bills, like your credit card and your car loan.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
WATCH THE FULL INTERVIEW HERE:
Creditcards.com industry analyst Ted Rossman shares top tips for credit card holders.