There are more changes on the horizon for consumers’ credit reports. Effective September 15th the three major credit reporting agencies – Experian, Transunion, and Equifax – will have a 180-day waiting period prior to including medical debts on credit reports. This will allow for more than enough time for any delayed payments and disputes with insurers to be resolved.
In addition to the six-month reporting delay, the three national credit bureaus will delete medical bills off consumer credit reports when payments are being received by the insurer. Currently, paid and unpaid medical bills are reported and cannot be removed from consumer credit reports until the seven-year period is over. Although, there are some credit scoring models that don’t penalize paid medical debts regardless of the source.
According to the CFPB (Consumer Finance Protection Bureau) 2014 study over half of all debt that appears on credit reports are medical expenditures; for 15 million consumers, medical debts were the only derogatory items on their credit reports. This is a staggering number. This new change is great news for many consumers as this will undoubtedly cause an increase on credit reports nationwide.
If you haven’t pulled any of your credit reports recently now would be the time to do so. You can access all three of your credit reports and continuously monitor them at the following: Nav, MyFreeScoreNow.com and MyFico.
Nav is the first online platform that consolidates personal and business credit monitoring and reporting. They also provide 24/7 alerts, ID theft protection and credit monitoring. Nav provides great resources for businesses as well as individuals with personalized profile options. Experian, Equifax and Transunion reports are accessible with their service.
MyFreeScoreNow.com is an industry leader in providing free credit scores and score report, access to ScoreTracker and email alerts. They also provide identity theft protection along with a free 7-day trial. MyFreeScoreNow.com provide excellent educational resources for their customers such as a blog, ABC’s of Credit and Bureau Basics. These resources give you more detailed information on the factors that impact your credit score to help you manage it better. Experian, Equifax and Transunion reports are accessible with their service.
MyFico is a leading expert in providing credit reports, scores and resources to consumers online. They provide 28 of the most widely used FICO scores that 90% of top lenders use for mortgage, auto and credit card lending. MyFico provides a community of financial and credit information for its users, savings and credit cards and goal setting calculators. Experian, Equifax and Transunion reports are accessible with their service.
If you have any further questions about the September 15th changes or any of the resources that I have mentioned above please feel free to ask.