Credit Reporting Changes 2022

2022 Changes to Credit Reporting

This year will see changes that could positively change how debt shows up on your credit report.
Starting in July 2022, Equifax, Experian & Transunion will no longer include medical debt that was paid after being sent to collections. Also, the period for unpaid medical debt appearing on a credit report will be increased from 6 months to a year.

Starting in 2023, credit reporting agencies will only report medical debt exceeding $500.
This is excellent news since credit bureaus estimate that these changes will remove 70% of medical collection debt tradelines from consumer credit reports.

Consumer Financial Protection Bureau research shows that medical debt is the most common debt collection tradeline representing 58% of all 3rd party debt collections. Additionally, CFPB data indicates that 62% of all medical collections are under $490.

Past-due medical debt can lower credit scores & reduce access to credit, making it harder to get a home or vehicle. It can also raise your auto insurance rate and affect your ability to get specific jobs, i.e., banking.
Most people with medical debt are insured, but uninsured people have more significant medical debts than insured.
Veterans, people of color, low-income individuals, Southerners, and the elderly are more likely to have medical debt than the national average.
People in the South have the highest percentage of medical debt collections, making Southerners likely to have lower credit scores than those in other regions.

The great news is FICO research shows that credit scores improved by 25 points for individuals who only have medical collections under new models.

If you have questions or want direction on your credit journey, please reach out, as we would be happy to point you toward resources that will help you. (you can find me here–>C )

Don’t forget you can visit to get your annual free credit check.

Consumer Financial Protection Bureau
6 Things You Can Do Now to Improve Your Credit

Leave a Reply