Bill shortens how long bad credit info stays on reports

What it does

The FAIR Credit Act changes how credit reports work. Medical debt would not show up on credit reports at all. Other negative information would stay on reports for 4 years instead of 7 years. Paid or settled debts must be removed within 45 days. The bill adds stronger identity theft protections and free credit monitoring for some groups.

Who it affects

Consumers who have medical debt or unpaid bills would be affected. Credit reporting agencies and lenders would need to follow new rules. Unemployed people, welfare recipients, and seniors would get free credit monitoring.

One thing to notice

The bill removes medical debt from credit reports. Lenders currently use medical debt to decide who gets credit.

From the analysis of the bill text, linked under Primary records below.

Where it stands

3 cosponsors: 3 Democrats.

• Jul 9, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jul 9, 2026 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• credit reports — Records that show if a person paid bills on time and how much debt they have
• medical debt — Money owed to doctors, hospitals, or other health care providers
• identity theft — When someone uses another person's name or information to open accounts