Starting this fall, medical debt will impact your credit score less

[Anonymous]

A new article was released on August 7th on CNN.com referencing FICO scores and medical bills. I figured I would copy and paste it so that you all can see the new developments beginning this fall!

(CNN) - If your medical bills are weighing down your credit score, you're in for a pleasant surprise.

This fall, FICO, the nation's top credit score provider, will make changes that put less of an emphasis on medical debt.

If the only unpaid debt on your credit report is medical debt, your FICO score could go up by about 25 points. If you have other kinds of debt, you might not see as big of an increase if any at all.

Another change to the way it calculates scores: FICO will begin ignoring debt in collections that has been completely paid off or settled. Currently, debts that go into collections, even if they are paid off, are factored into all credit scores for up to seven years.

This is a move VantageScore, the scoring model created by credit bureaus Experian (EXPGF), Equifax (EFX) and TransUnion -- announced last year.

Copyright 2014 CNN. All rights reserved.

[eric19k]

Yep. But by the time lenders will use new FICO model it will be good 4-6 years.

[Warrior2000]

In light of this pleasent article, should I start DV/Disputing accts paid off including Midland

[reneasworld]

Did they state when this will go into effect? I have a $550 medical bill that is in collections which I have tried to dispute and it remains. I had insurance at the time and the hospital did not submit the information to the insurance provider and I never received notice because they was sending it to the wrong address (someone entered the address incorrectly). Of course by the time, it showed up in collections on my report it was over a year and no insurance carrier would pay a bill that old.  I felt I should not have to pay for a bill when I pay for insurance because of their error.  

[Anonymous]

Unfortunately, it did not give a specific date.I am in the same boat and had the same question so I am hoping soon!