Many Americans May Have Experienced A Significant Rise In Their Credit Ratings

The most important factor in determining creditworthiness is the payment history, which shows how punctually a consumer pays their bills.

Credit Score Boost ( Photo: CNN )

There are several factors in calculating your credit score

Not paying your bills or paying them too late can seriously damage your creditworthiness. A low credit score may also disqualify you for loans and credit cards. These also include credit history length, new credit accounts, and credit usage. However, new data from the Consumer Financial Protection Bureau (CFPB) shows that recent changes to credit reports could bring significant benefits to consumers from a credit standpoint. And if the change works in your favor, you may find yourself scoring higher than before.

The practice of reporting medical claims under $500 has been abolished as medical debt is no longer reported

The CFPB subsequently estimated that 22.8 consumers had at least one health insurance premium removed from their credit report and 15.6 million consumers had all health insurance premiums removed. But rising credit scores aren’t the only reason healthcare debt is being wiped off credit reports. The CFPB also found an increase in available credit 18 months after consumers removed their most recent medical plan from their credit report. For those with medical collections totaling over $500, this increase increases to 32 points. This gives borrowers more opportunities to qualify for new credit cards and personal loans.

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