"Biden's Plan to Erase This Type of Debt from Credit Reports!"

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Credit Coach Rob

Jan 9, 2025

"Biden Administration Implements Rule to Remove Medical Debt from Credit Reports, Offering Relief to Millions of Americans"

The Biden administration announced a new rule requiring credit reporting agencies to remove medical debt from credit reports once it has been paid off.

This rule aims to provide relief to millions of Americans burdened by medical debt, allowing them to rebuild their credit scores and access more affordable credit.

Previously, medical debt could negatively impact credit scores even after it had been paid off, creating barriers to financial stability for many individuals.

The new rule is expected to benefit a significant number of consumers struggling with medical debt.

Hard vs. Soft Inquiries – What You Need to Know

When someone checks your credit report, it’s recorded as either a hard inquiry or a soft inquiry.

Soft Inquiries: Typically occur when you check your own credit or when companies pre-approve you for offers. These don’t impact your credit score.

Hard Inquiries: Occur when a lender reviews your credit to approve a loan or credit application. These can slightly lower your score, usually by 5-10 points.

While a single hard inquiry won’t hurt much, multiple hard inquiries in a short period can signal risk to lenders. Understanding the difference helps you make smarter financial decisions.

Managing Inquiries to Protect Your Score

Plan Applications Wisely
Limit the number of hard inquiries by applying only when necessary.

Rate Shopping? Bundle Inquiries
When shopping for a mortgage, car loan, or student loan, multiple inquiries within a short time (14-45 days) are usually treated as one for scoring purposes.

Monitor for Unauthorized Hard Inquiries
Check your credit report regularly to ensure no unauthorized inquiries appear. Dispute them if you find any.

Reflect on Your Inquiry History

Ask yourself...

Did I apply for credit cards or loans impulsively last year?
Am I using pre-qualification tools to check for offers without impacting my credit?
How can I better research lenders before applying to minimize unnecessary inquiries?

Coach Rob’s Tip: Being selective about when and why you apply for credit is one of the simplest ways to protect your score. Every application should align with a strategic financial goal!

Inquiry Management Toolkit

Signup with myFico for free and you need to track your inquiries.

Wants some training on how to dispute credit inquiries? Find out what you need and more

You might notice that some of the advice and strategies in the newsletters sound familiar week after week. That’s because building and maintaining excellent credit isn’t about knowing more, it's about mastering the basics.

Repetition is key to making these concepts second nature.

Just like an athlete practices the same drills every day, achieving an 850 credit score requires consistently applying tried-and-true principles... on-time payments, managing credit wisely, and staying disciplined with your financial habits.

Every time you revisit these ideas, you strengthen your foundation and develop the muscle memory to make smart credit decisions without overthinking. Remember, success comes from the daily, consistent steps you take... not just from learning something new.

Stay focused, stay disciplined, and let’s keep building your financial future together!

To your success,

Credit Coach Rob