The majority of people have medical bills reported on their credit reports. Seeing how many medical accounts can pile up on your credit report can be devastating. One of the main reasons why low-income consumers have bad credit scores is due to having medical bills in collection on their credit profiles. Some hospitals will report procedures that cost less than $20 bucks on your credit report, just to make a statement. Medical bills that are in collections on your credit profile are very destructive to your credit journey. It is always best to settle a medical debt before it hits collections. If it so happens to get there before you realize it, hurry and negotiate a good price to settle that debt.
There have been new medical debt relief bills that will start taking place in July of 2022. New rules have been created that will impact medical collections on our credit reports. The medical debt relief bill states that all medical bills under $500 that are in collection will be automatically removed from credit reports. For medical bills to be reported, the bill has to exceed $500. Also, if you have a paid or settled medical bill that is sitting in collections, it will be removed from your report. The status of the paid or settled medical bill needs to say that it is a closed account. Last but not least, the current laws state that creditors can report medical collections on credit reports after the debt has aged for six months. The new law states that creditors have to wait at least one full year before they can report a collection on a credit report. These new medical bill laws will take effect within this year. So far, this new bill seems as though it will help consumers strengthen their credit profiles. We are excited to see more people take control of their credit profiles because it truly is a necessity. Thank you for taking the time to read this informative article.
Sarinthia Saunders is a certified credit repair specialist and expert in her field. If you need help with your credit, call or text (201) 470-4457 for a Free Credit Consultation at Transitional Finances LLC.
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