Changes to Medical Collections Revolutionizes Credit Scores

Credit scores are complicated for many Americans–as many as 22% don’t even have a FICO score, and 11% are considered credit invisible. This means that credit can be a significant barrier for entrepreneurs looking to build a successful business.

But we have good news! What’s included in credit scores is changing; starting in July 2022, credit bureaus will treat medical collections differently. This change will positively affect financial inclusion, removing some of the obstacles that may be in the way for business owners. Many may now be eligible for a loan, credit card, lease, or other credit score-based products they previously were denied for. The new policy is as follows:

  • Medical debt that’s been paid will stop appearing on credit reports from all three bureaus (Equifax, Transunion, and Experian) even if it’s been reported for years.
  • Currently, the time a medical collection is reported on credit is six months. It will now increase to a year, giving people additional time to negotiate a payment plan or arrive at another solution.
  • Taking effect in the first six months of 2023, credit bureaus will no longer report medical collections under $500 on credit reports.

A poll from Bankrate showed that 21% of Americans had a credit application rejected because of a credit score that was too low. However, minorities are disproportionately affected by bad credit. More than half of Black Americans have no credit or a low to fair credit score, compared to 37% of their white counterparts. Making this change to medical collections is revolutionary in helping individuals and small businesses achieve the financing they need to thrive, especially for businesses run by minority entrepreneurs.

Ascendus serves low- to moderate-income business owners through our focus on credit education and financial inclusion. Its products are designed specifically for people who have been denied access to traditional banking products and services. Ascendus prioritizes working with small businesses, the backbone of many underrepresented communities. By providing access to credit and financial education, Ascendus helps empower these community business people to build better lives for themselves and their families. If you, or a business you know, would like to explore credit offers from Ascendus, you can learn more about our various products here.

The only Community Navigator Program in Florida was launched in Miami. The SBDC – FIU was tasked with being the hub and putting together a group of “spokes” (organizations) with deep roots in the community to offer this assistance. Among other organizations, Ascendus was selected and will be able to guide with access to capital, being bankable, and cashflow management. Other organizations will be able to assist with marketing, operations, business development, exporting, contracting, procurement, and other industry-specific training. This is a collaborative one-stop place for entrepreneurs to find the help they need for their businesses. To register for counseling, business owners can apply here.


Click to watch, and learn more about a few of the incredible businesses that successfully navigated the pandemic with Ascendus.

10 Fruits

10 Fruits: Slow pressed juices, superfood smoothies, organic açai bowls, whole-wheat waffles and house-baked pastries like empanadas and croissants. Locally roasted Panther Coffee served all day.

Bushwick Grind: Community-focused cafe that hosts live shows and serves coffee from Counter Culture Coffee Roasters, who work with local coffee farmers all over the world to ensure that their partners receive fair wages.

Kikos: The #1 LGBTQ and minority owned coffee and tea company in the USA! Representing Colombian culture, Kikos delivers specialty coffee and organic, loose leaf tea to all 50 states.


The Southern Opportunity And Resilience (SOAR) Fund provides 4% loans up to $100,000 to small businesses and nonprofits to navigate and rebuild from COVID-19. Read More

Washington Flex Fund

Supported by the Washington State Department of Commerce, the Small Business Flex Fund is designed to help small business owners and nonprofits access funds at a competitive interest rate to bounce back more vital than ever.
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Childcare Business Development

Ascendus is now offering loans up to $50,000 for licensed childcare businesses at a 9.99% interest rate. Qualified Businesses can be located nationwide, excluding Vermont. If you have been in business for more than three years, you can access up to $20,000 in fast-track financing at the same interest rate within 48 hours. No paperwork is required to apply. You can learn more about this program here.


0% loans up to $50,000 with only $25 monthly payments for the first 12 months for restaurants dedicated to creating safe and equitable work environments for their employees. Read More

Rideshare Business Term Loan

Loans up to $10,000 in financing for rideshare businesses offered at 9.99%. Qualified Businesses will be in Connecticut, Massachusetts, Maine, New Hampshire, New Jersey, New York, or Rhode Island. Read More

TrustPlus- Personal Finance Coaching where and when you need it

One-on-one personal finance coaching is available to you through our partnership with TrustPlus, a national nonprofit with three decades of experience supporting clients on paths to financial health.

FedEx Online Learning Lab

Online sales are the key to growing your business. You’ll gain insight and join a community of doers who are just like you, ready to take their business to the next level. Apply to the FedEx E-commerce Learning Lab now for access to workshops and coaching led by experts from 37 Oaks, free warehousing & order fulfillment through the holiday season, and a business grant from FedEx.

The LGBTQ community has faced countless challenges throughout history, but they continue to fight and thrive. One business owner who embodies the resilience and strength of the LGBTQ community is Juan Arroyave. Juan is the founder of Kikos Coffee & Tea, a Boston-based coffee shop that donates proceeds to charities supporting equality and diversity. Juan is also an active volunteer with Impact-U, a foundation that provides education to vulnerable Colombian communities. Juan recognizes that we must all grow together to build a sustainable society. This philosophy is reflected in Kikos Coffee & Tea’s commitment to everything from supporting education in Columbia to using Fair Trade ingredients. Learn more about Juan in his Story of Ascension.

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