22-07-2025
A rule lifting medical debt from credit scores was voided. What will change?
An estimated one-fifth of U.S. households have medical debt on their credit reports, a burden that makes it more expensive for them to buy homes, finance new cars and, in some cases, more difficult to obtain jobs. A recent court decision has now kept that system in place.
A Biden-era rule, announced last summer but never put into effect, sought to forbid credit reporting agencies, including Equifax, Experian and TransUnion, from using medical debts over $500 on the detailed credit history reports that lenders use to judge creditworthiness. Amid opposition from industry groups and the Trump administration, a federal judge then struck down the rule earlier this month.
