Equifax, Experian and TransUnion, the three largest credit-rating agencies, announced that they will very soon be changing the procedure of handling their records.

The agencies also said they will make dispute resolution process easier for consumers and will provide a waiting period before medical debts are reported.

Data collected on hundreds of millions of people by these agencies is used to create 'credit scores' which can determine who has been granted a loan and how much interest is being paid on that particular loan.

As per the changes announced on Monday, people who contest items in their credit reports will receive additional information concerning the disputes. People will also get instructions on what they can do if they didn't like the answer they receive.

In order to increase the accuracy, the agencies have announced that the medical dents will not be reported until after a 180-day waiting period to allow time for insurance payments to be applied.

The agencies have also agreed to remove previously reported medical collections from credit reports that have been paid by the insurance companies.

This move by the top credit-rating agencies came after a move by Fair Isaac Corp., in August. The company behind the FICO credit score announced that medical debt would have a smaller effect on the score.

And when the debts go to collection agencies and are repaid, they would not be counted against a consumer's FICO score.

The companies are also setting their focus to handle disputes in a better manner with consumers and to help victims of identity theft and fraud.

The three credit reporting agencies will discard reports on debts that didn't arise from a contract or agreement with the consumer, such as tickets or fines.