Major changes to credit laws: How reform can improve your credit score

In 2024, U.S. financial authorities have proposed significant reforms to credit laws, aiming to provide greater fairness and transparency to consumers. Although these changes are still pending approval, some measures are already making a difference in how credit reports are handled, particularly regarding medical debt and consumer rights.

Key Proposal: Medical Debt Removed from Credit Reports

In June 2024, the Biden Administration proposed completely removing medical debt from credit reports. This addresses concerns that medical bills don't reflect consumers' real ability to manage their finances. This proposal seeks to benefit millions of Americans, especially those affected by low-amount or paid medical bills. Although final regulation is expected in 2025, major credit bureaus (Equifax, Experian, and TransUnion) already removed paid medical debts and those under $500 in 2023.

Easier Error Correction

Another highlight is the simplified access and correction of credit reports. Credit bureaus now offer more transparency, making it easier to dispute errors in reports that might negatively affect consumer scores.

Impact of Changes So Far

Although proposed reforms are still under review, actions already implemented by credit bureaus have allowed millions of consumers to see improvements in their credit profiles. This is especially important for those seeking better interest rates on loans or new financial products.

How to Prepare to Take Advantage of These Improvements?

1. Review your credit report regularly. Take advantage of free access tools offered by credit bureaus.
2. Fix errors in your history. Act quickly if you detect incorrect information.
3. Keep your payments current. Responsible practices are always essential for a good score.
4. Consult with experts. A financial advisor can help you navigate these changes and maximize benefits.

These advances show a clear effort to protect consumers and improve the accuracy of credit systems. Stay tuned for official updates in 2025 to learn how these measures may continue to evolve and benefit you.