But the deal will only be sweetest for consumers that only have unpaid medical bills. Those that have other debts in addition to their medical ones will find themselves with only a slight improvement in their credit scores, if at all. And, therein lays the sweetness of the deal – no one will get hurt with the introduction of the new calculation method.
As Ulzheimer points out, “It’s going to be either neutral or helpful to everyone.”
A second change that will be implemented in the way FICO calculates scores is that they will no longer factor-in debts that have been paid off or settled. This is in contrast to the way it is currently done where debts in collection, paid off or otherwise, have an impact on consumers’ credit scores for up to seven years.
Your Credit Score May Go Up (Thanks To Medical Bills) was originally published on blackdoctor.org
