Millions of individuals are struggling to pay off medical debt. This is especially true for medical bills that have ended up in collections and negatively affected credit scores. Iowa consumers may see their credit scores go up due to changes made by FICO regarding medical bills.
According to a report by the Consumer Financial Protection Bureau, consumers are being punished for medical bills, which are not relevant to their credit worthiness and should not be a contributing factor in someone’s ability to get approved for a loan. In the recent weeks, FICO made an announcement that there will be changes to how it analyses credit scores. FICO is a company that is in charge of calculating credit scores and is used by most lenders to determine if individuals are credit-worthy.