How Credit Reporting Changes will Affect You
The nation’s largest credit reporting agencies, Equifax, Experian, and Trans Union are changing the way they handle errors and list unpaid medical bills. Credit reports are such a vital part of our lives and as the credit industry changes it will be helping millions of consumers across the country.
One of the new changes is the addition of a 180 day waiting period before any medical debts are reported, giving insurance companies’ ample time to make payments. Furthermore, the credit reporting agencies will be removing previously reported medical collections that have been or are being paid by insurance. Medical debt makes up 52% of all debt on credit reports, so these upgrades to the system will help a lot of people who are trying to improve their credit.
To help people dispute errors on their credit report more efficiently, the credit bureaus are hiring employees for the specific task of reviewing disputes. Credit bureaus will be providing more information to consumers with results of their dispute and information on next steps. For those consumers who do get a credit dispute resolved, they will now be entitled to obtain another free credit report for the year.
These changes will be rolled out over the course of the next several months.