@Anonymous wrote:
My fiance has several medical collections and I've had success in getting several removed thus bring up credit score. Once I get it to where it needs to be, even if those collections are stil showing up, will it have a significant impact? I've heard medical collections "don't matter" when it comes to home loans. Any truth to this?
Paid collections under < $100 are ignored by FICO 8. FICO 8 makes no distinction between medical and non-medical debt.
FICO's mortgage scoring models are older and they count all collections (even ones for $10). They also make no distinction between medical and non-medical debt. I hope the mortgage industry stops using them at some point, but I wouldn't expect that anytime soon.
FICO 9 ignores medical collections (I believe -- not 100% sure, but you can google it and find out) but very few lenders of any kind are using 9 yet.
And of course, upon manual review, any underwriter can see any collection you have and weight it however his lender wishes him too, even if it has been ignored by (say) FICO 8 or 9.
