Why Credit Scores May Be About to Go Up: It’s the New You
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A change in how the most-widely used credit score is calculated will reduce the importance of overdue medical bills and remove blemishes on once late, paid-off accounts.
The adjustments are expected to raise the median score for consumers whose only major delinquency is an unpaid medical bill by 25 points, according to an Aug. 7 statement from San Jose-based FICO, formerly known as the Fair Issac Corp. The updated scoring system is intended to better capture more recent behavior and will be available later this year, the company said.