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Monday, August 11, 2014

Medical Debt? Your Credit Score May Rise

The nation's top credit score provider, FICO, will introduce a new scoring procedure in the fall. Medical debt that is in collections will have less impact on your credit score. The scoring procedure was created by the three major credit bureaus and was originally announced last year. It is expected that the FICO score for those with only unpaid medical debt on their credit report will raise by 25 points. To lenders this means that those struggling to pay medical bills will look better in terms of risk and may qualify for better loan rates. 

FICO will also disregard debt in collections that is completely paid off or settled. As of now, even collection debt that is paid off may last up to seven years as a negative impact on credit.

If you would like more information about this topic or have general legal questions, please feel free to contact me at (973)949-3770 or via email at plamont@peterlamontesq.com We answer legal questions on a daily basis and would be happy to discuss any issues or questions that you have with you.  Offices in: New Jersey New York, Colorado & Puerto Rico.  Affiliated throughout the country.

© 2014, Law Offices of Peter J. Lamont. This Update is provided for informational purposes only. It is not intended as legal advice nor does it create an attorney/client relationship between the firm and any readers or recipients. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances. This Update may be considered attorney advertising in some states. Furthermore, prior results do not guarantee a similar outcome.
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