Credit scoring for consumers that have medical collections is changing as of July 1, 2022.  And it is about time!

The three primary credit repositories, EquiFax, Experian and Transunion, all have agreed to the changes that will remove approximately 70% of medical collection debt from consumers' credit files.

As of July 1, 2022:

• Medical collection debt will be removed (not just showing as paid collection) from credit reports after it has been paid.  Typically, debt sent to a collection agency remains on a report for up to 7 years.
• Negative reporting for unpaid accounts will appear on reports ONLY after 12 months has passed.  This gives the consumer extra time to finalize questions with providers and insurers before the debt affects their credit rating.
• Medical collection accounts below $500 will not be included on reports at all.

If collections have been holding your credit score down, you may want to consider re-exploring your options after July 2022.