If you have medical debt under $500, it will no longer appear on your credit report. That’s right – the three major credit reporting agencies have recently changed how they report medical debt, and it will make a big difference for many people.
Previously, even small medical debts could have a big impact on your credit score. This was particularly frustrating for people who were trying to do the right thing and pay off their debts, but still found themselves struggling to get approved for loans or credit cards. But now, medical debts under $500 will no longer appear on credit reports.
With this change, consumers won’t have to worry about these debts affecting their credit scores and making it difficult to get approved for loans or credit cards.
It’s an important step towards making our credit reporting system more fair and accurate. Medical debts can be especially tricky to deal with because they often involve insurance companies, hospitals, and doctors’ offices. It’s not uncommon for bills to get lost or delayed in the process, which can make it tough for people to keep up with their payments.
By removing small medical debts from credit reports, the credit reporting agencies are acknowledging that these debts may not be the best indicator of someone’s creditworthiness. After all, someone who has a small medical debt on their credit report may be very responsible with their finances in other areas.
Of course, it’s still important to stay on top of your finances and try to avoid medical debt whenever possible. But if you do find yourself with a small medical debt, you can rest a little easier knowing that it won’t have as big of an impact on your credit score. Dovly can help you work with the credit bureaus to straighten out any inaccurate information. Dovly is an automated credit improvement engine that can help you track, manage, and fix your credit. Try it risk-free with our free membership tier.