Biden Bans Medical Debt From Credit Reports, Boosting Millions’ Credit Scores
The Biden administration’s final rule eliminates unpaid medical debt from credit reports, impacting over 15 million Americans and removing $49 billion in debt. This change, expected to boost credit scores by an average of 20 points, will prevent lenders from using medical debt in loan decisions. The rule follows the credit bureaus’ prior action of removing medical collections under $500 and is projected to increase mortgage approvals significantly. This action aims to address the inequity of individuals facing financial hardship due to medical expenses.
John Q. Hosedrinker