Medical Debt Is Off Your Credit Report—What That Means

Written By Blake Early

In a major move by the Consumer Financial Protection Bureau (CFPB), medical debt is officially being removed from consumer credit reports. This change is expected to benefit millions of Americans—and could open the door to homeownership for many who previously didn’t qualify.

Here’s what this update means for potential buyers:

  • $49 billion in medical debt is being removed from credit reports.

  • An estimated 22,000 new mortgage approvals are expected each year.

  • Credit scores may shift by ±20 points, depending on the individual.

  • Around 15 million people are expected to be impacted.

It’s important to note: medical debt still exists and still needs to be paid—it just won’t negatively affect your credit score anymore. That means a clearer path forward for those who’ve been held back by medical bills in the past.

Want to know how this change might impact your ability to get pre-approved for a mortgage? Reach out to the team at Cream City Mortgage—we’re happy to walk you through it.

Blake Early
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