Below are the top two reasons why you should be excited about the new credit score models.
According to a survey distributed by Kaiser Permanente, one in five working Americans with health insurance reported problems paying their medical bills. Some scoring companies have begun to reduce the impact this type of debt has on credit scores which will help improve availability of credit.
- Fico 9 Score. Fico has redefined its credit scoring method which will help increase your score a little because of the weight it contributes to the model. Once it’s completely implemented, medical bills that have been written off to collections will weigh less heavily on your score, if that is the only negative item in your credit report.
- Veterans’ Credit Protection Act. If the Veterans’ Credit Protection Act is passed, the bill would require Veterans Affairs to have a toll-free number put in place so veterans could report credit issues. This would help veterans resolve credit issues caused by delayed payments.
View article about the new credit score models.