As the Biden-Harris re-election campaign kicks into high gear, the president and vice president are highlighting a number of policies and achievements that may have flown under the radar. Once such change under the administration looks to improve the credit rating of millions of Americans and ease the enormous problem of medical debt that many people face throughout the United States.
"Medical debt can no longer be included on your credit score"
Speaking with President Joe Biden in Philadelphia on Wednesday in an appearance aimed at Black voters, Vice President Kamala Harris touted the administration’s efforts “to address some of the biggest issues facing the Black community.” One achievement she highlighted is a new set of federal policies concerning medical debt. “We are now making it so medical debt can no longer be included on your credit score,” the vice president said, “so that medical debt cannot impact a person’s ability to get a car loan, an apartment lease, or a home loan.”
VP: We are now making it so that medical debt can no longer be included on your credit score. pic.twitter.com/u5nCwAGicK
— Acyn (@Acyn) May 29, 2024
Improving credit scores
Vice President Harris first announced the new policy in September during an event with Rohit Chopra, the head of the Consumer Financial Protection Bureau, a government agency created after the 2008 financial meltdown. Harris said at that event that “no one in this country should have to go into debt to get the quality health care they need.” At the time of the September announcement, the details of the new policy had yet to be developed by Chopra’s agency, but Harris promised that “these measures will improve the credit scores of millions of Americans so that they will better be able to invest in their future.”
Policy change kicks in July 1
CNBC reported earlier this year that, starting July 1, the three largest credit agencies in the U.S. — Equifax, Experian and TransUnion — will drop paid medical debt from credit reports, meaning that this debt will no longer be used to lower credit scores. This move is expected to impact 70% of the negative credit marks that currently exist based on medical debt. Additionally, the changing policies will give those who owe medical debt more time to pay it before it hits their credit report, and debt under $500 won’t be factored into credit scores.
These changes are expected to have a significant impact for many of the millions of Americans who have a total of $88 billion in medical debts. And as the Biden-Harris campaign continues to court Black votes for a close presidential race, we can expect that the administration will continue to push for and publicize policies like these.
