The changes that have come to credit reports in 2023 will have a significant impact on credit scores.
Credit bureaus will stop reporting delinquent medical debts under $500, which will be omitted from credit reports.
This is expected to remove roughly 70% of medical collection debt from credit reports, around $88 billion.
This change will help many consumers build or rebuild their credit worthiness, credit history, and credit scores.
The new FICO® 10 credit scoring model will incorporate account balances for the last 24-plus months.
This could result in a downward shift for those with recent delinquency or high credit utilization ratios.
If you have been making timely payments, paying off debt, and using less credit line, you can see your score improve.
The changes will help new borrowers with limited credit histories and those with paid medical debt to improve scores.
This change is positive for consumers, as it will make it easier for them to move past their existing medical debt.