Medical Debt Will No Longer Crush Your Credit Rating

The math behind your credit score is getting an overhaul, WKYC-TV reports.

The biggest change is that civil judgments, medical debt and tax liens will no longer affect your score:

Taking those items out of the equation comes after a 2015 agreement between the three credit bureaus and 31 state attorneys general. The argument was that civil judgments and tax liens —which can significantly hurt a person’s credit score — were often full of errors. Medical debt was being reported on a person’s credit report before there was time for insurance to reimburse.

People with those items on their credit reports now could see a bump of as much as 20 points. But it won’t help much if they also have negative marks like delinquencies and debts that have gone to collection.