May 23, 2022

Medical Debts to be Removed From Credit Reports

With the terrible economy, high unemployment, and loss of health insurance,  there are lots of people who have their credit score negatively affected by medical bills.

This is happening more and more considering the fact that the United States economy has been in disarray for the past several years. People are constantly struggling to get ahead and medical bills being listed as blemishes on a credit record can stop people from reaching their full potential.

There has recently been a proposal by Rep. Heath Shuler that would require that the three credit reporting agencies delete any medical debt of up to $2,500 within 45 days of the bill being paid off.

Right now when you have a medical debt it stays on your credit report for seven years even if you pay it off before then.

The bill has not yet been sent to the Senate, but supporters of it are hoping to see it voted on as early as the fall. If this is approved there are many people who would qualify for loans and credit cards that they were not formerly eligible for.

Opponents of the bill feel that taking medical debt off of credit reports gives credit card companies a false impression of the type of person that they are lending it to.

The main reason why credit reports are checked are so that lenders can see if the borrower usually pays debts back in a timely manner. Opponents feel that not having medical debt available on a credit report will lead to lenders not being paid back when they should.

While that may be a valid point, there are many people who cannot pay back bills right away because they have illnesses that require them to seek expensive medical treatments on a regular basis. Supporters of the bill feel like these people should not have a problem qualifying for mortgages and things of that nature because of something that is beyond their control.

In CNN’s coverage, a consumer credit specialist weighed in on the topic and he says that he believes the real problem is the fact that hospitals are not working with their customers enough to figure out why they have fallen so far behind.

Read more:
CNN Money
Unpaid Medical Bills Can Ruin Your Credit
Unpaid Medical Bills Can Negatively Impact Credit
How Medical Bills Affect Your Credit

Credit Repair: Know Your Rights and How To Spot A Scam

“We have all heard the old adage “”If it seems too good to be true, it probably is,”" and that applies to just about everything in life, including credit repair. According to statistics, Americans, as a whole, are over $1.2 billion in debt. With that number, that averages to approximately $5,000 for each American citizen. What is even more surprising than that is the fact that this is non-mortgage debt, so the estimated number would be even more than that staggering figure.

With the amount of money that each American is in the hole for, it is no wonder that more and more people are looking for ways to get out. There are too many reasons to list why there is so much debt, but the fact remains that we are. The reasons can be anything from job loss to excessive spending, but that does not change the fact that many people are trying to find a way out.

When it comes to repairing one’s credit, there are very many things that people are not even aware of. Offers of credit repair services are on the internet, on our television sets, and in our mail boxes. It is not hard to see why so many people are using these companies. Their claims of restoring one’s credit is very appealing to anyone trying to purchase a car or home, or even find employment. What people do not realize is that anything these companies can do for it’s customers can be done by the customers themselves for free or a fraction of their preposterous fees.

According to the Federal Trade Commission’s website, there are not only ways to help yourself to improve your credit score, but also ways to spot companies who do not have your best interest in mind. The Credit Repair Organization Act gives a few ways to recognize if credit repair companies are legitimate or not. Companies requiring payment up front for the services they provide and those who do not inform you of the things that you can do on your own to repair your credit are not legitimate. Another big no-no that should send up a red flag is the company’s advising customers to apply for an Employer Identification Number to use instead of a Social Security number in an attempt to invent a new identity. If the company should tell you to not contact any of the three major credit reporting companies yourself, steer clear. Boasts and promises of being able to rid you of all of your negative credit information, including current and accurate information, should also be an indicator of non-legitimate business practices.

According to the Fair Credit Reporting Act (FCRA), every individual is entitled to one free credit report from each of the three major credit reporting agencies once during every 12 month period. Individuals are also eligible for free credit reports if they are unemployed and are planning to look for employment within the following 60 day period.

Americans trying to get ahead, become debt free, and enjoy a better life should really take heed and avoid getting taken advantage of. After all, it is our credit that we are dealing with, and we always have our best interests at heart, so taking control of repairing it should be our responsibility first.”

Additional information at:

Federal Trade Commission

Credit Repair: How To Help Yourself

Family Debt-Statistics

New Year Brings New Scams

We recently discussed the top three scams that targeting those who wish to repair their credit. Now, let’s take a look at several more schemes that are gaining popularity and some tips on how you can avoid being a victim.

If you’ve ever considered selling anything on Craigslist, you’ll definitely want to check this one out!

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Disastrous Credit Myths

Think you know everything there is to know about credit? Well, think again.

Several common misunderstandings can lead you down the path to bad credit and eventually bankruptcy.

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FTC Keeps Watch Over Credit Report Accuracy

Good news! You’re not the only one looking out for your good credit. Since 2004, the Federal Trade Commission has been monitoring credit reports and seeking information from consumers regarding errors.

According to the FTC’s December 2010 report, the study will be the first to directly engage the three main groups in the credit reporting process: consumers, national consumer reporting agencies, and furnishers of information to the reporting agencies. Approximately 1,000 consumers, randomly selected throughout the nation, will review their credit reports from all three national credit bureaus with an expert, who will help identify potential errors on their reports. Participants will be encouraged to dispute errors that could affect their credit standing, and credit reports with alleged errors will be sent to Fair Isaac Corporation (FICO) for rescoring. The study will estimate the proportion of consumers who would find one or more material errors in their credit reports, and it will reveal the main types of errors, their frequency, and their impact on a consumer’s credit standing. Overall, the study will categorize errors by type and seriousness in terms of potential consumer harm.

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Despite Legislation, Credit Card Companies Still Hungry For Young Adults

Credit card companies are still finding some of their best customers in young adults.

Unable to offer students free items such as t-shirts and pizza, companies are coming up with even sneakier ways to lure college students into the credit trap. Intangible features such as discounts and rewards remain fair game and are easily paving the way for financial ruin.

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Reviewing Your Credit Score Can Help You Avoid Disaster

Thinking that ignorance is bliss? Well, maybe so, but knowing your credit score can save you a lot of time, effort and pain in the future.

With identity theft on the rise, periodically checking your score ensures that you haven’t unknowingly been a victim. Further, all of us (yes, even creditors) make mistakes. And when every points counts, these are mistakes worth catching.

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Your Credit Can Affect Your Ability to Get Hired

Your credit score might affect your ability to get hired.  This is particularly true if the job at stake involves the company’s financial matters.

Using credit reports is another tool that employers use when conducting background checks. It’s all a part of the process to make sure they do their homework on candidates and make sure they are making the right choice when hiring. It has become another part of the hiring process – like checking references, validating employment history and/or verifying educational records.

If your credit has been checked in conjunction with the application for a job, you have a right to know. Further, if you are rejected for a job because of your bad credit, the employer is required by law to present you with the information they obtained.

Read more here about your rights as a job applicant and how your credit score might affect you.

Debt Free in 60 Seconds

Getting completely out of debt may take a little longer than 60 seconds,

but these are still some great tips to help you get started on your journey.

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Top Credit Repair Scams of 2010 are Nothing New

According to the Better Business Bureau, people are still falling for the same old tricks.  Since the 1930s, credit repair scammers have been using the same tactics to take the money of the willing and the desperate. There’s a lot to be said about the old add adage, if it’s too goo to be true, it probably is. Don’t be a victim.

The top three scams of 2010, in this order, were: work-at-home and fraudulent employment opportunities; credit repair and debt negotiations/settlement services; and advance-fee lenders.

“Scammers continue to follow the money trail and target the desperate emotions of people,” said Steve J. Bernas, president and CEO of the local Better Business Bureau. “This year, the top three scams were again related to personal finances.”

Bear in mind that if it’s too goo to be true, it probably is. Don’t be a victim.

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