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Credit Score Rejiggering

Credit Score RejiggeringMost consumers know the major cause of personal bankruptcy in the USA is unpaid medical debt. Americans face the highest medical expenses of any advanced economy.

If a health crisis strikes and you do not have any health insurance or just catastrophic coverage then you will be left holding the bag or according to the urban dictionary “SOL.” Thanks to Obamacare millions are no longer “SOL.” But millions still face little options in Republican governed States.

The real kicker is the health care fees you will be billed for are generally double the negotiated rate an insurance plan pays to the medical provider.

But another kicker is the impact on your credit score should your unpaid medical bills go into collections. Thus limiting your access to credit and ironically the ability to obtain a potential loan to pay the onerous unpaid medical expenses.

However, there is recent good news as FICO, the industry-standard measure of U.S. consumer credit risk, has rejiggered the way they calculate your credit score to lessen the impact of medical debt.

The new FICO Score 9 from Equifax brings a more nuanced way to assess consumer collection information, bypassing paid collection agency accounts and offering a sophisticated treatment differentiating medical from non-medical collection agency accounts. This will help ensure that medical collections have a lower impact on the score, commensurate with the credit risk they represent. FICO says these enhancements help credit grantors because they result in greater precision.

For more information on the secretive FICO consumer score visit

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