AARP Hearing Center
Even in retirement, your credit report and credit score are important, especially if you plan to take out any loans to buy a home, finance a car purchase or help out a child or grandchild by cosigning for a loan.
Recent developments in the world of credit might affect your score and your ability to borrow money. Here are some of the recent changes you need to know about.
1. Credit report errors are easier to fix
Thanks to efforts spearheaded by the Ohio Attorney General's office, the three main credit-reporting agencies — Equifax, Experian and TransUnion — reached a settlement in March 2015 that makes it easier to fix mistakes in your credit reports. That means if there's an error on your report or out-of-date information, you have a better chance of having it addressed.
Instead of using automated processes to handle all consumer disputes, credit bureaus are starting to use specially trained employees to investigate complaints about mistakes in credit reports in instances where consumers provide written documentation about errors. Consumers will also receive additional information from the bureaus after the dispute has been investigated, including a list of options if they aren't happy with the outcome.
2. More time to resolve medical debt
Under the terms of last year's credit bureau settlement, medical debt — a big source of problems for many older Americans — won't immediately ding your credit reports or hurt your credit score. In the past, if you were at least 30 days late in paying a bill, it could go on your reports as a delinquency and stay there for seven years.
But under the new changes that are being implemented over a three-year period, past-due medical debts won't be reported to the credit bureaus until after a 180-day waiting period. With this restriction in place, consumers and medical providers have more time to work out billing disputes or to ensure that insurance payments have been properly applied.
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