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FICO Score not counting Medical Bills

There are not too many people who plan on having a medical emergency that they simple can not afford. Now these undesired medical collections will have less weight on your FICO Credit Score. The latest FICO Score (FICO Score 9) will soon be treating medical and non-medical debts increasing your credit score 25 points if medical debt is your only negative.

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Petr Kratochvil

According to the FICO website, this new and sophisticated version of the FICO Credit Score will be available to lenders through the credit reporting agencies this fall. Not counting unpaid medical bills is one of the improvements. The software will also be better able to assess risk of those who have not had credit very long.

FICO helps lenders predict the risk of loaning money to consumers based on payment history and a number of other factors. Having only a little debt compared to your income and making sure that payments are made on time can help increase your credit score to give greater advantages when getting future loans including lower interest rates.

Of course none of this matters if your lender does not use FICO scoring techniques. For example, Fannie Mae and Freddie Mac use an older version of the FICO score and may continue to do so. Still, as the economy in the US continues to improve and more capital is needed to start businesses, purchase homes and cars, ect. not having to worry about that one trip to the emergency room that cost and is still costing an arm and a leg.

For more information about your credit score and specifically your FICO Score, visit

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