Unpaid medical bills will soon no longer hurt your credit score, according to the Consumer Financial Protection Bureau.
The government watchdog groupruledTuesday that credit reporting agencies can’t include medical debt on credit reports.
Ahigh credit scorecan get you better terms on credit cards, loans and other types of financing.
Alower credit scorecould mean less favorable borrowing terms or prevent you from qualifying for a loan.
The rule could be challenged when Republicans sweep into office later this month.
Some Republican leaders have already called forreining in the CFPBandreplacing its director.
If you have unpaid medical bills weighing down your credit score, here’s what you should probably know.
Why is the CFPB removing medical debt from credit reports?
That change reportedlyhelped boost credit scoresby an average of 30 points for those with outstanding medical bills and balances.
Will removing medical debt help my finances?
There’s also the chance your score could drop slightly if your medical debt is removed.
What can you do if you have medical debt?
If you’re saddled with medical debt, the first step is to determine if thebills are accurate.
