Lenders can no longer use medical debt to decide who gets credit

The US consumer protection agency just made it illegal for lenders to use medical debt when deciding if someone qualifies for a loan. This means credit reporting agencies also cannot share medical debt information with lenders, which could make it easier for people with medical bills to get credit.

For years, medical debt could ruin a person's credit score, even if they paid other bills on time. Lenders could see these debts and use them to deny loans or charge higher interest rates. This rule means that medical debt will no longer directly factor into credit decisions, potentially improving access to credit for millions of Americans.