FICO to Adjust Credit Scores

According to a recent article in the New York Times, FICO, the creator of widely used credit scores is making adjustments to debts that should result in an increase in many consumers’ credit scores. Medical debts which account for nearly half of all unpaid debt will no longer we weighed as heavily. In addition, overdue payments that have already been made will no longer be considered.

Analysts predict that those with a score of 710 could see a rise of 25 points which could very possibly mean they would qualify for better interest rates.

Of course, those consumers who primarily had unpaid medical debts on their credit reports will see an even greater increase.

Leave a Comment