How to Fix Mistakes on Your Credit Report
In the wake of news that most medical debt will be removed from consumer credit reports this summer, you may be wondering how to be sure your credit report is accurate going forward.
70% of Medical Debt to be Removed from Credit Reports
Credit reporting agencies announce relief for consumers facing medical debt
An accurate credit report matters because your credit score is used for things like getting a mortgage or renting an apartment and can come into play when financing a car or even when getting insurance.
According to this article at CNBC, having medical debt removed from a credit report could improve your score by as much as 100 points.
If medical debt that has gone to collections is the only blemish on your report, once it comes off, your score could increase by about 100 points, Rossman (of Bankrate) predicts. The impact will be lower for someone who has other missteps, he said.
Sometimes, though, the credit reporting agencies (Experian, Equifax, TransUnion) make mistakes. This means your medical debt might not be removed as expected OR there may be other errors on your report.
More than one-third of Americans found at least one error on their credit report, according to a 2021 Consumer Reports investigation.
Here’s how you can start the work of ensuring your credit report is accurate.
“You should always be checking your credit report,” said Chi Chi Wu, staff attorney at the National Consumer Law Center.
The reports are available through AnnualCreditReport.com.
Also, don’t be tempted by credit repair companies. Many of them (illegally) charge upfront fees and most of them do work that you can do yourself.