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.

For more information on the issues surrounding medical debt, please contact RIP Medical Debt.