On the 8th of June, there will be changes on how your credit is reported. These include:
• Collections that aren’t at least 180 days old will be rejected by the 3 major credit bureaus. You will now have time to pay them off before it is even reported.
• Medical collections will no longer show on credit reports as long as it is being paid (through either you or insurance)
• Collection accounts that have not been updated in six months or more will not be factored into scores.
• Any collection that did not result from a contract or agreement to pay by the consumer, will be removed.
This means that now is the perfect time to speak with a loan professional about how this will impact your ability to buy a home.