8 Steps to Fix Your Credit Score in 2025: Plus the Latest on CFPB Medical Debt Rule

The Consumer Financial Protection Bureau (CFPB)’s 2025 rule aimed to remove medical debt from credit reports, which could have erased $49 billion in medical bills for about 15 million Americans and boosted scores by an average of 20 points.

But in July 2025, a federal court in Texas blocked the rule, ruling that the CFPB exceeded its authority under the Fair Credit Reporting Act (FCRA).

That means, for now, unpaid medical bills can still appear on your credit report, unless your state has stronger protections.

What This Means for You

If You Have Medical Debt:
Your bills may still affect your credit score. The expected score boost and easier credit access are on hold. However, some states have banned medical debt reporting, so check your state’s rules.
 

If You’re Applying for Credit:
Lenders may still consider medical collections when making lending decisions, possibly raising your interest rates or hurting your approval chances.
 

Tip:
Always check your reports from Equifax, Experian, and TransUnion for medical collections or reporting errors.

How Credit Scores Work (2025 Guide)

Credit scores range from 300 to 850, with most Americans averaging 714:

• 599 & below: Poor

• 600–649: Fair/Poor

• 650–699: Fair

• 700–749: Good

• 750+: Excellent

Medical debt and missed payments can easily push scores lower, but you can still rebuild your credit using simple, proven steps.

8 Steps to Fix Bad Credit and Raise Your Score Fast

1. Check Your Credit Reports Regularly

Get free reports at AnnualCreditReport.com. Look for mistakes like old medical bills, duplicate entries, or accounts you don’t recognize.
 

2. Dispute Any Inaccuracies

File a dispute online with each bureau. Include documentation (e.g., receipts, letters, or bank statements). Bureaus must investigate within 30 days.
 

3. Pay Down Balances

Keep your credit utilization below 30% of your limit. High balances hurt your score fast, lowering them helps quickly.
 

4. Stay on Top of Payments

Set autopay reminders to avoid late payments. Payment history makes up 35% of your score, so timeliness matters.
 

5. Keep Old Accounts Open

Older accounts help your credit age. Avoid closing cards with long histories unless they carry high fees.
 

6. Limit New Credit Applications

Multiple inquiries can drag your score down. Space out credit applications and apply only when needed.
 

7. Consider Debt Consolidation

Merging debts into one loan can lower your interest and simplify payments, just compare offers carefully.
 

8. Get Professional Help if Needed

If you’re overwhelmed, contact a credit counselor or legal advisor to explore repayment or bankruptcy options responsibly.