CHICOPEE, Mass. (WWLP) – Some welcoming news if you owe medical bills; your credit score may go up. The nation’s top credit score provider “FICO” plans to use a new credit scoring method where medical debt in collections will have less of an impact on your credit score.
Emily Newcomb of Palmer told 22News she thinks it’s a great idea. She said, “If somebody has medical debt, it was most likely covering something that was a needed expense in the first place, and wasn’t covered by their insurance. And if their behind on their payments, for it to punish them and their credit score seems really unfair.”
The company says the median FICO score for those with medical debt will jump about 25 points. The change means many consumers with medical bills that they can’t pay will likely be able to qualify for better rates and deals.